Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 12/01/1993, Docket: RS92- 57-003, Status: Effective

Original Sheet No. 154 Original Sheet No. 154 : Effective

GENERAL TERMS AND CONDITIONS

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The specific Qualified Bid selection procedure is

as follows:

(1) Identify the Winning Bid Value. If there is

only one Qualified Bid, or combination of Qualified Bids, which

create the Winning Bid Value, such Qualified Bid(s) shall be awarded

the released capacity.

(2) In order to break ties, identify all Qualified

Bids which, alone or in combination with other Qualified Bids, can

create the Winning Bid Value. Rank order these Qualified Bids in

order of their Unit Bid Value from highest to lowest. Allocate the

Capacity Release Request capacity first to the Maximum Bid Volume of

each Qualified Bid with the highest Unit Bid Value; allocate any

remainder to the Maximum Bid Volume of each Qualified Bid with the

next highest Unit Bid Value; and so forth. If, at any step, the

available Capacity Release Request capacity is less than the

combined Maximum Bid Volumes of Qualified Bids with equal Unit Bid

Values, then the Capacity Release Request capacity shall be

allocated on a pro rata basis to each Qualified Bid based on its

Maximum Bid Volume. To the extent such a pro rata allocation would

result in a capacity allocation to one or more Qualified Bid(s)

below its Minimum Bid Volume, then such below-minimum Qualified Bids

shall be discarded in their entirety and the Capacity Release

Request capacity shall instead be allocated on a pro rata basis

(based on the Maximum Bid Volume of each Qualified Bid) among the

remaining Qualified Bid(s).

(3) In the event that the previous Section

16.10(d)(2) pro rata allocation procedure does not result in a

single winning combination of Qualified Bid(s) with the Winning Bid

Value, then Section 16.10(d)(2) shall be disregarded and the winning

Qualified Bid(s) shall be determined in the following manner:

(A) Identify the highest individual Maximum

Bid Volume for a Qualified Bid which, alone or in combination with

other Qualified Bid(s), can create the Winning Bid Value. Discard

all Qualified Bid combinations which do not contain a Qualified Bid

with such highest Maximum Bid Volume. Identify the highest volume

which can be allocated to such Qualified Bid with such highest

Maximum Bid Volume in the remaining combinations and still have the

Winning Bid Value. Discard all combinations of Qualified Bid(s)

which do not contain the highest such volume allocation. If this

does not break the tie, then repeat the above procedure looking to