Portland Natural Gas Transmission System

Original Volume No.1

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Effective Date: 02/11/1999, Docket: CP96-248-009, Status: Effective

Original Sheet No.352 Original Sheet No.352 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(c) Two or More Bids with the Same Highest Present Value. In the

event two or more bids provide the same highest present value, the Releasing

Shipper has not specified a different method for breaking ties, and none of

those successful bids states that the bidder is unwilling to accept proration

of the released capacity in the event of a tie, the capacity released will be

prorated among the Successful Bidders as follows:

(1) If all successful bids are for the full amount of

released capacity, the released capacity will be allocated pro-rata to the

Successful Bidders; and

(2) If any or all successful bids are for less than the full

amount of released capacity, then the released capacity will be prorated based

on the ration of each Successful Bidder's requested quantity and the total

quantity requested by such bids.

In the event that any Successful Bidder has stated in its bid that it is

unwilling to accept a prorated part of the release capacity in the event of a

tie; or fails to satisfy the criteria set forth in Section 11.11 herein; then

the uncommitted capacity will be allocated to the other Successful Bidder(s)

in accordance with the applicable proration procedures.

(d) Failure to Execute a Gas Transportation Contract for Firm

Service. In the event the Successful Bidder fails to execute a Gas

Transportation Contract for firm service within the time frame set forth in

Section 11.12, and the Releasing Shipper does not at that time withdraw the

Release Notice, Transporter will offer the released capacity to the bidder(s)

who submitted the next highest bid(s) in accordance with the criteria

specified in Section 11.9 or 11.10 herein, while meeting all other minimum

terms of the Release Notice.

(e) For purposes of this Section 11.9 only, any bid rate, or

other form of revenue guarantee, higher than the maximum applicable Recourse

Rate reservation charge shall be deemed to be a bid equal to the maximum

applicable Recourse rate reservation charge.