Canyon Creek Compression Company

Third Revised Volume No. 1

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

Original Sheet No. 156 Original Sheet No. 156 : Effective

GENERAL TERMS AND CONDITIONS

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EXAMPLE (1) Assume:

Capacity Release Request = 100,000/day for 5 years

Qualified Bids:

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

----------- ------- -------- ----------

Bid (a) 20,000/day 5 years $.18 0

Bid (b) 10,000/day 5 years $.17 0

Bid (c) 85,000/day 5 years $.15 0

Winning Qualified Bids: There is only one combination of bids with

the highest possible total Bid Value (Winning Bid Value).

Therefore, Bid (a) receives its Maximum Bid Volume (20,000); Bid (b)

receives its Maximum Bid Volume (10,000); Bid (c) receives 70,000.

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EXAMPLE (2) The assumptions remain the same as in Example (1),

except that we assume that Bid (c) has a Minimum Bid

Volume of 85,000.

Winning Qualified Bids: Again, there is only one combination of

bids with the Winning Bid Value. Therefore, Bid (c) receives its

Maximum Bid Volume (85,000) plus Bid (a) receives 15,000.

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EXAMPLE (3) The assumptions remain the same as in Example (1),

except that we assume that Bid (a) has a Minimum Bid

Volume of 20,000 and Bid (c) has a Minimum Bid Volume

of 85,000.

Winning Qualified Bids: Again, there is only one combination of

bids with the Winning Bid Value. Therefore, Bids (b) and (c) each

receive their Maximum Bid Volumes. This combination leaves 5,000

unallocated, which stays with the Releasing Shipper.

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