Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

Effective Date: 06/01/1997, Docket: RP97- 60-002, Status: Effective

Second Revised Sheet No. 345 Second Revised Sheet No. 345 : Effective

Superseding: Second Sub First Revised Sheet No. 345

GENERAL TERMS AND CONDITIONS (continued)

(e) All Bids must contain the information on the Bid Form set forth in

this FERC Gas Tariff, in particular a Bid must state:

(i) the identity of the Bidder (which will be concealed during the

Bidding Period);

(ii) the Storage Service Agreement number of the Releasing Shipper

and the Release Number to which the Bid relates;

(iii) the bid rate(s) that the Bidder is willing to pay for the

released storage rights, which may be no less than any minimum

bid rate(s) specified in the Release Request;

(iv) the MSQ and/or MDWQ for the Bid, which must equate to the MSQ

and/or MDWQ specified in the Release Request, or be no less

than any minimum MSQ or MDWQ specified in the Release Request;

(v) the term for which the Bidder wishes to obtain the storage

rights which must be the same as the term specified in the

Release Request, or be no less than any minimum term specified

in the Release Request; and

(vi) whether the Bid is contingent, and if so, the basis of the

contingency.

12.6 Determination of Successful Bidder for Storage Rights

(a) Bid Evaluation Methodologies: The Releasing Shipper shall specify in

the Release Request one of the following bid evaluation methodologies:

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

Request submitted specifying one of these methods shall be accorded

the timeline treatment described in Section 12.7. However, the

Releasing Shipper may choose another bid evaluation method, but this

request shall be accorded the timeline treatment described in Section

12.7 of this Article. Transporter shall apply the method chosen to

determine the successful Bidder. Transporter's application of

Releasing Shipper's bid evaluation method shall result in as many

winning bidders as mandated thereby; provided that the volumes

released to each successful bidder shall be no less than one

dekatherm. If the Releasing Shipper desires to award to more than one

winner, the Releasing Shipper should allow for acceptance of partial

TQ bids.