Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 50 Original Sheet No. 50 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

will not be eligible to receive the released capacity.

Each bid for released capacity must contain the following

information:

(i) The term of the proposed acquisition;

(ii) The maximum rate(s) bidder is willing to pay for the

capacity;

(iii) The volume desired;

(iv) Whether or not the bidder is an affiliate of the

releasing customer or of Pipeline; and

(v) Any other information requested by the releasing

customer in its notice of release.

Any bid must be accompanied by notification to Pipeline of

the identity of the bidder, including bidder's legal name,

address, and the name and title of the individual

responsible for authorizing the bid. If the bid is

submitted to the Pipeline for posting by Pipeline, the

identity of the bidder will not be revealed during the

bidding period. Likewise, if bidder places its bid

directly on Pipeline's EBB, it need not provide identity

data at such time, but must notify Pipeline concurrently

with the placing of the bid as to its identity. Upon the

award of capacity, both the winning bid and the name of

winning bidder will be posted.

Any bid received by Pipeline during the bidding period

shall be binding on the bidder unless rescinded by the

bidder prior to the close of the bidding period. Once a

bidder has withdrawn its bid, however, it may not submit a

new bid for the released capacity at a lower rate, although

it may make a new bid at a higher rate.

25.8 Awarding of Released Capacity

Released capacity shall be made available on a nondiscriminatory

basis in accordance with the procedures described herein.

Within one (1) business day after the close of the bidding

period, Pipeline will evaluate all bids received, and select the

bid which will receive the released capacity. Initially,

Pipeline will eliminate from consideration those bids which do

not meet the minimum conditions established by the releasing

customer and those bids which have not complied with Pipeline's

own creditworthiness criteria. If the releasing customer has

provided criteria for determining the "best bid", Pipeline will

apply those criteria to determine which bid receives the

capacity. If no evaluation criteria have been provided by the