Viking Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2004, Docket: RP04-306-000, Status: Effective

Eighth Revised Sheet No. 75 Eighth Revised Sheet No. 75 : Effective

Superseding: Seventh Revised Sheet No. 75

GENERAL TERMS AND CONDITIONS

21. RELEASES OR ASSIGNMENTS OF FIRM TRANSPORTATION AGREEMENTS (Continued)

21.5 Bidding for Transportation Rights (Continued)

(iv) the quantity applicable to the Bid, which must be no less than the

minimum specified in the release;

(v) the term for which the Bidder wishes to obtain the transportation

rights, which must be the same as the term specified in the

release, or be no less than any minimum term specified in the

release; and

(vi) whether the Bid is contingent and, if so, the basis for the

contingency.

All bids must be for the receipt and delivery points specified in the release.

The receipt and delivery points awarded a Replacement Shipper in accordance

with this Section shall be specified on its Transportation Agreement.

Replacement Shipper shall be eligible for the use of secondary points in

accordance with the priority afforded the released transportation in accordance

with Subsection 3.5 of these General Terms and Conditions.

21.6 Determination of Successful Bidder

Company shall determine the successful bidder in accordance with the following

procedures:

(a) If the release specifies an economic value standard for the award of

released transportation rights, Company shall apply such standard

including any designated tie-breaking procedure if necessary, to determine

the successful Bidder. Company's application of Releasing Shipper's

economic value standard shall result in as many successful bidders as

mandated thereby.

For the capacity release business process timing model, only the following

methodologies are required to be supported by capacity release service

providers and provided to Releasing Shippers as choices from which they

may select and, once chosen should be used in determining the awards from

the bid(s) submitted. They are: 1) highest rate, 2) net revenue and

3) present value. Other choices of bid evaluation methodology (including

other Releasing Shipper defined evaluation methodologies) can be accorded

similar timeline evaluation treatment at the discretion of the capacity

release service provider. However, the capacity release service provider

is not required to offer other choices or similar timeline treatment for

other choices, nor, is the capacity release service provider held to the

timeline should the Releasing Shipper elect another method of evaluation.

[5.3.3/v1.0]

(i) If the Present Value Method is chosen in the release, Company shall

evaluate the Bids and award the capacity based on the following

procedures. Company shall determine the bid or bids having the

highest present value ("PV") based on the following formula: