Transwestern Pipeline Company, LLC

Third Revised Volume No. 1

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Effective Date: 08/01/2007, Docket: RP06-614-003, Status: Effective

Third Revised Sheet No. 151 Third Revised Sheet No. 151 : Effective

Superseding: First Revised Sheet No. 151

GENERAL TERMS AND CONDITIONS

(continued)

24.4 Bid Solicitation

To the extent Transporter conducts a "bid solicitation" for unsubscribed capacity posted on its

Internet Website, all bids received during the bid solicitation period will be treated as having been

received at the same time and will be awarded utilizing a present value method based on the bid

criteria set forth below.

A. Bid Solicitation Notice

Transporter's bid solicitation shall specify:

1. quantity (dth/day)

2. the available points, paths or segments

3. the effective date capacity is available

4. the deadline for submitting bids

5. whether Transporter is willing to consider offers at less than maximum tariff rates for

all or any portion of the capacity or term

6. A Shipper need not offer to pay a different rate (including, without limitation, a

negotiated rate) that may be in excess of the maximum tariff rate to obtain such capacity.

7. Whether there is a pre-arranged Shipper that has submitted a binding offer to Transporter

in advance of the bid solicitation. Any creditworthy party that is not an affiliate of

Transporter may submit a pre-arranged offer.

B. Minimum Bid Solicitation Timelines

The following are the minimum periods that the notice of a bid solicitation will be posted:

1. For a term of less than five (5) months, the bid solicitation period shall be a minimum of

one (1) business day.

2. For a term of five (5) months to one (1) year, the bid solicitation period shall be a

minimum of three (3) business days.

3. For a term of greater than one (1) year, the bid solicitation period shall be a minimum of

five (5) business days.

C. Bids

To be considered a valid bid, bids must be binding, must be received by the bid solicitation

deadline and must specify:

1. the quantity desired (and whether the shipper is willing to accept a portion of the

quantity)

2. primary receipt point(s)

3. primary delivery point(s)

4. the term

5. reservation rate

D. Bid Evaluation

Valid bids will be evaluated by determining the highest present value using the current Commission

interest rate as defined in 18 C.F.R. Section 154.501(d) pursuant to the following formula:

-n

R x 1 - (1 + i ) x Q x 30.4 days/month = present value

i

where: i = interest rate per month using the current Commission interest rate as

defined in 18 C.F.R. Section 154.501(d)

n = term, in months

R = the rate bid ($/dth reservation charge, if a two-part rate,

or if a one-part rate, the reservation charge plus the usage rate), and

Q = the Quantity stated in dth/day

If Transporter receives both maximum rate bids and negotiated rate bids, then any negotiated rate

bid exceeding the maximum tariff rate shall be considered equal to the maximum tariff rate for the

purpose of evaluation.