Canyon Creek Compression Company

Third Revised Volume No. 1

Effective Date: 09/24/2001, Docket: RP01-515-000, Status: Effective

First Revised Sheet No. 160 First Revised Sheet No. 160 : Effective

Superseding: Original Sheet No. 160

GENERAL TERMS AND CONDITIONS

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EXAMPLE (7) Assume:

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

Qualified Bids (which were all received through Canyon's Interactive

Website):

Maximum Bid Unit Bid Minimum

Volume Term Value Bid Volume

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

Bid (a) 50,000/day 5 years $.18 50,000

Bid (b) 50,000/day 5 years $.18 50,000

Bid (c) 50,000/day 5 years $.18 50,000

Winning Qualified Bids: The two Qualified Bids shown as received

earliest by Canyon's Interactive Website shall each receive their

Maximum Bid Volume.

Explanation: Clearly, any two Bids in combination have the same

Winning Bid Value. Since the Bids are completely inflexible and have

equivalent Maximum Bid Volumes and equivalent Minimum Bid Volumes,

only Section 16.10(d)(3)(C) can be used to break the tie. The tie

breaker looks to the Qualified Bid(s) shown as received earliest on

Canyon's Interactive Website.

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(e) In no event shall this Section 16.10 result in

winning Qualified Bids with a total volume in excess of the capacity

specified in the Capacity Release Request.

(f) The bid evaluation procedure set forth in this

Section 16.10 shall only consider Qualified Bids to the extent they

provide for an objectively quantifiable payment by the Qualified

Bidder. A Qualified Bid based on a percentage of Canyon's reservation

charge shall be evaluated by Canyon based solely on the maximum

reservation charge being charged by Canyon for such service as of the

end of the open season.