Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-280-000, Status: Effective

Third Revised Sheet No. 258 Third Revised Sheet No. 258

Superseding: Second Revised Sheet No. 258

GENERAL TERMS AND CONDITIONS

21. CAPACITY RELEASE (Continued)

21.10 Bid and Award Process

(a) Bid Process

Bidders may submit Bids during the Bidding Period applicable to a capacity

release offer. All Bids must be submitted via the System and must be

expressed in absolute dollars and cents or percents of applicable maximum

tariff rate, whichever is stated in the capacity release offer. All

contingencies must be identified on the Bid or capacity release offer.

In submitting a Bid, Bidders recognize that such Bids will be accessible

by other Bidders through the System. Upon submission, all Bids will be

assigned a Bid number and the identity of the Bidder will not be revealed

during the Bidding Period.

For releases with a term of more than one year, or for releases with a

term of one year or less that will take effect more than one year from the

date Releasing Shipper notifies the Company of the release, bids shall not

exceed the applicable Maximum Rate for the applicable firm transportation

service being released as set forth on the currently effective Summary of

Rates and Charges. The Maximum Rate shall not apply to Capacity Releases

for a period of one year or less if the release is to take effect on or

before one year from the date on which the Releasing Shipper notifies the

Company of the release. For all releases, bids shall not be less than the

applicable minimum rate set forth in the capacity release offer.

The quantity specified in a Bid may not exceed the maximum quantity or be

less than the minimum quantity specified in a capacity release offer.

The release term specified in a Bid must meet the term specifications in

the capacity release offer.

Bidding will be an iterative process such that a Bidder may submit any

number of Bids during the Bidding Period; provided that each new

submission of a Bid requires the withdrawal of any previous Bid submitted

by Bidder such that a Bidder cannot have more than one Bid in contention

for the same capacity at one time. If a Bidder withdraws its Bid and

resubmits a new Bid, such new Bid must be at a higher rate. A Bidder

retains the right to withdraw its Bid by resubmitting a new Bid, until the

close of the Bidding Period, at which time, such Bid shall become binding.

Bids must contain information consistent with the currently effective FERC

adopted NAESB standards.

(b) Awarding of Capacity to a Successful Bidder

The determination of the successful Bidder shall be effected in accordance

with the following procedures:

(1) Bid Evaluation Methodologies

The Releasing Shipper shall specify in the capacity release

offer one of the following Bid evaluation methodologies:

(i) highest rate, (ii) net revenue, or (iii) present value. A

capacity release offer submitted specifying one of these methods

shall be accorded the timeline treatment described in

Subsection 21.11. However, the Releasing Shipper may choose

another Bid evaluation method and this request also shall be

accorded the timeline treatment described in Subsection 21.11 of

these General Terms and Conditions. Company shall apply the