Tuscarora Gas Transmission Company

Original Volume No. 1

Effective Date: 08/27/1997, Docket: RP97-428-001, Status: Effective

First Revised Sheet No. 84 First Revised Sheet No. 84 : Effective

Superseding: Original Sheet No. 84

GENERAL TERMS AND CONDITIONS

(g) Offering Shipper's Bid Notification Deposit. Within ten days of

posting of its Bid Notification the offering shipper shall tender a check

made out to Transporter as a Bid Notification deposit which shall be equal

to the prepayment that would be due in connection with a request for the

same service pursuant to Section 3 of the General Terms and Conditions of

this Tariff. Transporter will return the Offering Shipper's deposit plus

interest at the rate prescribed by Section 154.67 (c) of the commission's

regulations or any successor regulation if (i) Transporter rejects the

Offering Shipper's bid; (ii) the Offering Shipper fails to meet all of

Transporter's FERC Gas Tariff provisions governing Shippers' eligibility;

(iii) pursuant to its Right of First Refusal, the Existing Shipper matches

the Offering Shipper's bid; or (iv) the Offering Shipper withdraws the

Bid Notification before the bid is rejected or before the Existing Shipper

matches the bid, whichever occurs first. Transporter will refund the

entire deposit plus interest at the rate prescribed by Section 154.67 (c)

of the Commission's regulations or any successor regulation within ten

days of the event triggering the obligation to return. If Transporter

executes a Transportation Service Agreement pursuant to agreed-upon terms

with the Offering Shipper, Transporter shall credit the amount of the

deposit to Shipper's invoice for the first month of the requested

transportation service. If, however, the Offering Shipper fails to

execute a Transportation Service Agreement as provided in Section

27.5 (k), Transporter will retain the deposit as liquidated damages.

(h) Transporter's Review of Offering Shippers' Bid. Transporter will

review all Offering Shippers' bids on a nondiscriminatory, objective basis

and determine the Best Bid within two weeks of the closing of the open

season consistent with the following standards; provided, however,

Transporter will not be obligated to accept any offer for transportation

service at less than Transporter's maximum applicable rate:

(i) The bid that offers the maximum rate for the longest term shall

be the Best Bid, provided, however, that an Existing Shipper is not

required to match a Competing Offer with a term greater than five (5)

years, or if no Offering Shipper offers the maximum rate;

(ii) The Best Bid will be the bid that provides the highest present

value calculated by using the interest rate published by the

Commission pursuant to 18 C.F.R. Section 154.67; and