Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-841-000, Status: Effective

First Revised Sheet No. 151 First Revised Sheet No. 151

Superseding: Original Sheet No. 151

GENERAL TERMS AND CONDITIONS

26. CAPACITY RELEASE (Continued)

26.5 Allocation of Parcels (continued)

(a) Primary Allocation (Continued)

where: P = percent of the maximum authorized rate or charge that

the Replacement Shipper is willing to pay.

R = Rate or charge calculated as: The applicable

maximum authorized reservation charge(s) per Dth (or

a volumetric equivalent of the maximum reservation

charge(s) applicable to the Parcel on a 100% load

factor basis) in effect at the time of the bid for

service from the same receipt point to the same

delivery point under the Releasing Shipper's rate

schedule.

For short-term capacity releases not subject to a rate

cap, P * R shall equal a Replacement Shipper's bid in

terms of absolute dollars and cents per Dth.

i = FERC's annual interest rate divided by 12.

n = number of periods for which the bidder wishes to

contract, not to exceed the maximum periods to be

released by the Releasing Shipper. For releases

greater than or equal to one month, the period is the

number of months. For releases less than one month

the period is the number of days.

A bid queue will be maintained for each individual

Parcel.

Option 3 - Net Revenue. Bids will be given priority

based on the net revenue for the term of the bid.

If Releasing Shipper does not specify an option for

determining best bid, Option 2 will be the default

option used.

Under all options, Transporter will evaluate and rank

all bids for Parcels.