Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 11/01/2004, Docket: RP05- 14-000, Status: Effective

Original Sheet No. 51 Original Sheet No. 51 : Effective

RATE SCHEDULE FTS-1

Firm Transportation Service

(continued)

i) highest present value, as determined by the following formula:

-n

(R per unit) x 1 - (1 + i ) = present

i value

per unit

where: i = interest rate per month using the

current Commission interest rate as

defined in 18 C.F.R.

154.501(d),

n = term of the agreement, in months, and

R = the rate bid on a monthly basis (the

reservation charge)

ii) If the rate bid exceeds the maximum tariff rate, then the rate will be considered

to be the maximum tariff rate.

iii) Transporter will rank all bids according the present value formula set forth in

(i) above, and will determine which bid(s), if any, are acceptable to

Transporter.

E. Any third-party Shipper who submits a bid for the available

capacity shall be obligated to sign and submit, with its bid, a

firm Service Agreement for such capacity at its bid price,

subject to a right of first refusal by the Shipper. If a firm

Service Agreement does not accompany a bid or if the third-party

bidder does not meet Transporter's creditworthiness standards,

the bid shall be invalid and shall be rejected.

F. Bids must conform to the notice of available capacity set forth in D above, except

that any third-party Shipper may submit a bid for the entire quantity or a partial

quantity. The bid shall also specify whether a Shipper is willing to accept a

partial quantity bid in the event of tie bids or in the event that the existing

Shipper elects to match a partial quantity bid by the third-party Shipper.

G. In the event two or more parties have bids of equal value which qualify as the best

offer and which, in the aggregate, exceed the total capacity to become available,

the capacity shall be allocated on a pro rata basis.

H. At least three months before the expiration of the Service Agreement, Transporter shall notify

the Shipper as to the terms of the acceptable bid(s) it has received. Shipper shall have the

right to match one or more of said bid(s) pursuant to section I below or to negotiate

continued service pursuant to section J below no later than two weeks after such notice is

given by Transporter.

An FTS-1 Shipper exercising its ROFR may be required to match a bid up to a

maximum rate higher than the currently effective maximum rate applicable to

the capacity if there is an incremental rate on the system, the system is

fully subscribed, and there is a competing bid above such currently effective

maximum rate.