Mississippi Canyon Gas Pipeline, LLC

First Revised Volume No. 1

Effective Date: 12/20/1998, Docket: CP96-159-006, Status: Effective

Original Sheet No.133 Original Sheet No.133 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

19.6 Offer and Bid Procedures - (h) (cont'd)

(i) the bid (or bidder) does not comply with all of the terms

and conditions and deadlines of this Section 19.

(ii) the bid submitted exceeds the bidder's preapproved credit term or limits;

(iii) the bid is for capacity at Delivery and Receipt Point(s)

other than those points specified in the Offer; or

(iv) the bid does not meet the minimum terms of the RELEASING

SHIPPER's Offer; or

(v) the bid contains a contingency that is not allowed by the

Offer or the bidder has not removed the contingency by the

deadline set forth in the Offer.

(i) The Best Bid Determination: All bids deemed to be eligible

following Transporter's initial review pursuant to subsection

19.6(h) shall be reviewed in determining the best bid. The

best bid shall be determined by Transporter pursuant to the

economic criteria for determining the best bid set forth in

the RELEASING SHIPPER's Offer. If the Offer does not specify

the economic criteria, the eligible bids will be evaluated by

Transporter by multiplying the price bid times the volume bid.

Bids for a term of more than one (1) month that vary in price

or term shall be discounted to present value based on

currently effective Commission interest rates or such other

published, objective financial measure as posted by

Transporter in advance of the offer/bid cycle. This formula

will generate a revenue number for comparison of the bids and

the bid producing the most revenue shall be determined to be

the best bid.

If the RELEASING SHIPPER's Offer allows the reservation charge

to be bid on a volumetric rate basis as well as a reservation

charge basis, for purposes of comparing a volumetric rate bid

with a reservation charge bid to determine the best bid,

Transporter shall assume that the firm transportation quantity

requested under a volumetric rate bid will be transported each

day of the release unless another calculation is specified in

the Offer by the RELEASING SHIPPER.