Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

Third Revised Sheet No. 239 Third Revised Sheet No. 239

Superseding: Second Sub First Revised Sheet No. 239

GENERAL TERMS AND CONDITIONS

(Continued)

9. Capacity Release Program (Continued)

9.4 Offers To Purchase Capacity: Any person may submit to Transporter

for posting, or, to the extent that Transporter's electronic

bulletin board can accommodate postings by third parties, may post

an offer to purchase capacity. Any Shipper may attempt to accept

such a posted offer by following the prearranged offer provisions

of Section 9.3 of the General Terms and Conditions.

9.5 Term: Any release under this Section shall be for a minimum term

of one day and may have a maximum term up to the earlier of (a) the

expiration date of this Tariff provision; (b) the expiration of the

remaining term of the underlying FT-1 Service Agreement; or (c)

termination of Transporter's capacity release program by the

Commission.

9.6 Calculation of Economic Value: The economic value of each bid

hereunder shall be determined by using the evaluation method

selected by the Releasing Shipper. Transporter shall offer the

following methods for bid evaluation. In addition, Transporter may

offer additional evaluation methods at its discretion; except that

Transporter will not offer first-come, first-served as a valid bid

evaluation methodology.

(a) Highest Rate

The highest bid rate that meets the minimum terms and

conditions of the release.

(b) Present Value Method

-n

R x 1 - (1 + i) x V = present value

_____________

where: i = interest rate per month using the current

Commission interest rate as defined in 18

C.F.R. Section 154.501(d)(1)

n = term of the agreement, in days

R = the Reservation Charge(s) and

Reservation Surcharge(s) bid

V = volume stated in MMBtu per day

R x N x V = net revenue

where: R = the Reservation Charge(s) and

Reservation Surcharge(s) bid

N = term of the agreement, in days

V = volume stated in MMBtu per day