Paiute Pipeline Company

Second Revised Volume No. 1-A

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Effective Date: 02/25/2009, Docket: RP09-272-000, Status: Effective

Fourth Revised Sheet No. 104 Fourth Revised Sheet No. 104

Superseding: Third Revised Sheet No. 104

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY RELEASE (Continued)

14.1 Definitions: (Continued)

release transaction directly with a Releasing

Shipper, which terms are posted to the Electronic

Bulletin Board. Prearranged

Replacement Shippers must meet all of the terms

and conditions

of Paiutes tariff as required of any other

Shipper.

(g) Bidder: A party submitting a bid(s) to Paiutes

Electronic

Bulletin Board for released capacity.

(h) Open Bidding: Full disclosure of the bid form(s)

submitted

to the Electronic Bulletin Board, excluding

bidders name.

(i) Short-Term Releases: The release of firm capacity

for a time

period of one year or less.

(j) Long-Term Releases: The release of firm capacity

for a time

period of more than one year.

(k) The Economic Value of a Bid: For the capacity

release

business process timing model, only the following

methodologies are required to be supported by

Paiute and

provided to Releasing Shippers as choices from

which they

may select in determining the awards from the bids

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 Paiute. However, Paiute is not

required to

offer other choices or similar timeline treatment

for other

choices, nor is Paiute held to the timeline should

the

Releasing Shipper elect another method of

evaluation.

(l) Daily Rate: Converting a monthly rate to a daily

rate is

accomplished by multiplying the monthly rate by

the number

of months in the rate period, dividing the result

by the

number of days in the rate period, taking the

remainder out

to 5 decimal places, and rounding up or down to

the trans-

porters specified decimal place.