Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 08/09/2010, Docket: RP10-956-000, Status: Effective

First Revised Sheet No. 2203 First Revised Sheet No. 2203

Superseding: Substitute Original Sheet No. 2203

GENERAL TERMS AND CONDITIONS

Section 10

(Cont'd)

(c) Bidding

The deadline for bids for capacity posted pursuant to the exercise of a

right-of-first refusal will be specified in the posting; however, bids

will be due no less than 30 days after posting and no more than 60 days

after posting.

(d) Content of Bids

Bids must be submitted in writing or on the Internet Website to Pipeline.

Bids must contain all information necessary for a valid request for

service pursuant to Section 8 of the General Terms and Conditions,

including price bid, quantity, and term desired. Texas Gas may reject

all bids which would require it to discount below a rate and discount

term agreeable to Pipeline.

10.5 Selection of "Best Bid" for ROFR and Notice to Current Capacity Holder

(a) At the close of the bidding period, Pipeline will choose the "best bid,"

based upon what will yield to the Pipeline the highest net present value,

using a 10 percent discount factor, of the reservation charge

(reservation charge X CD), the bidder is willing to pay through the term

bid. If several bids yield the same net present value, the bid which

yields to the Pipeline the highest net present value over the shortest

period of time will be considered the best bid. After this process, if

there are still several bids which yield the same net present value, then

the "best bid" will be the bid submitted first in time.

(b) The terms of the "best bid" will be communicated in writing by Pipeline

to the Customer currently holding the capacity. The Customer currently

holding capacity will have 30 days to match the "best bid." Competing

bids must be matched by the Customer currently holding the capacity, even

if the bid is for less than the total capacity available under the

applicable service agreement. Competing bids must be matched up to the

maximum rate applicable to the service currently being provided under the

subject service agreement, for the term bid by the "best bidder." When

SGT or SGL Customers are required to match the "best bid," bids which

contain a reservation charge will be converted to a comparable one-part

volumetric rate.

(c) For any Customer submitting a bid or matching a "best bid," who agrees to

pay the maximum rate, the rate that will be paid by that customer will be

the maximum rate as it may exist from time to time during such term as

agreed to by Customer.