Viking Gas Transmission Company

First Revised Volume No. 1

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

Third Revised Sheet No. 76 Third Revised Sheet No. 76 : Effective

Superseding: Substitute Second Revised Sheet No. 76

GENERAL TERMS AND CONDITIONS

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

21.6 Determination of Successful Bidder (Continued)

-n

PV = (Bid Rate) x (Bid Quantity) x 1-(1+i)

_______

where

Bid Rate = for firm releases, the reservation charge which the

Bidder has agreed to pay; for interruptible releases,

the usage charge which the Bidder has agreed to pay.

Bid Quantity = the quantity stated in the Bid.

i = interest rate per month (which shall be the then current

maximum yield on five year U.S. Government Treasury notes

divided by 12), (Company will post the current Treasury note

rate on its System); and

n = the lesser of (i) the term proposed by the Bidder or

(ii) 60 months.

(ii) If the net revenue method is chosen, Company shall determine the

bid or bids having the highest net revenue (NR) using the following

formula:

NR = (Bid Rate) * (Bid Term) * (Bid TQ)

where

Bid Rate = the daily charge which the Bidder has agreed to pay; for

reservation rate bids, the charge is calculated by

multiplying the bid rate received from the Bidder by

12/365.

Bid Term = the term proposed by the Bidder in days.

Bid TQ = the TQ stated in the Bid measured in Dekatherms.

(b) If a release includes a Prearranged Bidder, then the released

transportation rights shall be awarded to the Prearranged Bidder if its

Bid either (a) is equal to or is higher than the Bid with the greatest

economic value under the standard submitted by the Releasing Shipper, or

(b) has a rate which is equal to or higher than the highest rate of the

Bids submitted by all other Bidders, or (c) if the Prearranged Bidder

agrees to match any Bid having a greater economic value or higher rate, as

applicable, within the time period provided by Subsection 21.7 of these

General Terms and Conditions.

economic value or highest rate, as applicable, then the transportation

rights shall be awarded to that Bidder, subject to any Prearranged

Bidder's exercise of its right of first refusal (matching) as set forth

above.