Michigan Gas Storage Company

First Revised Volume No 1

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Effective Date: 06/01/1997, Docket: RP97-152-003, Status: Effective

First Revised Sheet No. 62A First Revised Sheet No. 62A : Superseded

Superseding: Original Sheet No. 62A

GENERAL TERMS AND CONDITIONS

(continued)

capacity by 1:00 PM four (4) Business Days before the

bidding period ends. The bidding period ends at 2:00 PM

on the Day before nominations are due.

21.5 Selection of Replacement Shipper

(a) The Releasing Shipper may specify any reasonable and

nondiscriminatory criteria to be utilized by MGS for

evaluating the best bid for capacity. Capacity will be

awarded to the bidder submitting the best bid. When MGS

makes awards of capacity for which there have been

multiple bids meeting minimum conditions, MGS shall award

the bids, best bids first, until all offered capacity is

awarded.

(b) If the Releasing Shipper has not specified any criteria

for determining the best bid for capacity a bid for

capacity will be selected based upon the offer for that

capacity which provides the greatest economic value, as

defined in Section 24.2, and which meets all the

conditions placed upon the assignment by the Releasing

Shipper. If the offers of two or more Replacement

Shippers provide the same economic value and meet all the

conditions placed upon the assignment, the Replacement

Shipper who tendered its offer first will receive the

assignment.

For the capacity release business process timing model,

only the following methodologies are required to be

supported by capacity release service providers and

provided to releasing shippers as choices from which they

may select and, once chosen, should be used in

determining the awards from the bid(s) submitted. They

are: 1) highest rate, 2) net revenue and 3) present

value. Other choices of bid evaluation methodology

(including other releasing shipper defined evaluation

methodologies) can be accorded similar timeline

evaluation treatment at the discretion of the capacity

release service provider. However, the capacity release

service provider is not required to offer other choices,

or similar timeline treatment for other choices, nor, is

the capacity release service provider held to the

timeline should the releasing shipper elect another

method of evaluation.

(c) If the Releasing Shipper has notified MGS in the Release

Notice that it has arranged a Designated Replacement

Shipper who has agreed to pay less than the applicable

maximum rate for the service, and no party submits an

offer for the assignment providing greater economic

value, MGS will tender a Service Agreement to the

Designated Replacement Shipper for execution.

(d) If the Releasing Shipper has notified MGS in the Release

Notice that it has arranged a Designated Replacement

Shipper who has agreed to pay less than the applicable

maximum rate for the service and a bid with a greater

economic value is received for the capacity, the

Designated Replacement Shipper may match that higher

offer