Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

Effective Date: 10/23/2006, Docket: RP06-604-000, Status: Effective

First Revised Sheet No. 134 First Revised Sheet No. 134 : Effective

Superseding: Original Sheet No. 134

GENERAL TERMS AND CONDITIONS

(continued)

20.5 Transporter shall then evaluate the bids as follows:

A. Highest present value, as determined in Section 24.4.D.

B. Transporter will determine which bid or combination of bids yields the highest total

present value as set forth in A above, and will determine which bid(s), if any, are

acceptable to Transporter.

20.6 Any third-party bidder 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. Any

bid submitted will bind the bidder to the terms of the bid if Transporter selects

such bid to receive the available capacity. 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.

20.7 Bids must conform to the notice of available capacity set forth in 20.4 above, except

that any third-party bidder 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.

20.8 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.

20.9 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, if any.

Shipper shall have the right to match one or more of said bid(s) pursuant to Section

20.10 below or to negotiate continued service pursuant to Section 20.11 below no later

than two (2) 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.