Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 118 Original Sheet No. 118 : Effective

GENERAL TERMS AND CONDITIONS

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(ii) If firm capacity is available for only an

interim period for any reason (e.g., because the firm capacity is

already contracted at a future date after such interim period or the

firm capacity is only available physically or operationally for that

interim period), then Trailblazer may limit the rights of the

Shipper awarded the capacity for that interim period. Trailblazer

will indicate in any open season posting for such capacity the

limitation on rights which will apply to such firm capacity awarded

for the interim period.

(c) EVALUATION OF COMPETING BIDS AND REQUESTS

In comparing valid bids received in an open season or in

comparing two or more valid and competing pending requests for

service under the Request Procedure, Trailblazer will award firm

capacity based on the highest economic value, as defined in this

Section 6.1(c).

(1) HIGHEST ECONOMIC VALUE

The highest economic value is the highest net

present value of the stream of incremental revenue produced by a

valid bid or request, or combination of valid bids or requests,

received by Trailblazer for firm capacity which is consistent with

the reserve price where one has been established. Incremental

revenue is the additional revenue Trailblazer would collect from a

Shipper under any bid or request over and above the revenue

Trailblazer would otherwise have received after taking into account

any revenue lost or affected by the bid or request (i.e., where an

existing capacity holder submits a bid or request which is

contingent upon turnback by that existing capacity holder of an

existing capacity commitment, only the value of such a bid or

request net of the revenue which would be lost to Trailblazer due to

the turnback of the existing contractual commitment will be

considered).

(2) ONLY GUARANTEED REVENUE CONSIDERED

In the determination of highest economic value,

Trailblazer shall consider only reservation charge revenue and any

other guaranteed revenue under bids or requests which meet any

applicable reserve price. In the case of a bid or request for firm

service involving a Negotiated Rate or Negotiated Rate Formula, the

rules on calculating net present value set out in Section 38.2 of

these General Terms and Conditions shall apply.