Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 07/30/2001, Docket: RP01-463-000, Status: Effective

Second Revised Sheet No. 4001 Second Revised Sheet No. 4001 : Effective

Superseding: Original Sheet No. 4001

GENERAL TERMS AND CONDITIONS

Section 33

(Continued)

(f) Each bid must include:

(i) the Bidder's name;

(ii) the rate per Dth;

(iii) the desired amount of capacity;

(iv) the Package being bid upon.

(g) A bid can be withdrawn or changed during the bidding period. The

following changes to a bid will also be allowed:

(i) increase in rate;

(ii) increase in volume;

(iii) decrease in volume.

(h) Gulf South will determine the "Winning Bid" based upon the bid(s)

that has the highest rate per Dth, up to the total Package

capacity. In the event the auction will include negotiated rate

form bids, Gulf South will determine the Winning Bid based upon

the bid(s) that generates the highest present value, using a

discount rate equivalent to fifteen percent (15%) pre tax rate of

return for Gulf South, up to the total Package capacity. If Gulf

South receives two or more equal bids that would qualify as the

Winning Bids for the capacity being auctioned, Gulf South will

award to each Bidder its total bid if the total capacity of the

combined Winning Bids is equal to or less than the total Package

capacity available. If the total capacity of the combined

Winning Bids is greater than the total Package capacity

available, Gulf South will allocate the volumes between Bidders

based upon their pro rata Winning Bid volume.