Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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

Original Sheet No. 203 Original Sheet No. 203 : Effective

GENERAL TERMS AND CONDITIONS

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(b) Trailblazer shall calculate a Bid Value for each

Qualified Bid and Prearranged Release (if any), and shall calculate

the Winning Bid Value, as follows:

(1) For each month, the volume and reservation

charge per Dth stated in the Qualified Bid shall be multiplied

together to derive a gross monthly revenue figure. If the Qualified

Bids contain volumetric-based charges permitted by the Capacity

Release Request, then the gross monthly revenue figure shall be equal

to any minimum amount designated by the bidder to be billed as a

reservation charge even if there is no (or insufficient) flow.

(2) Each gross monthly revenue figure shall be

discounted to a net present value figure as of the first day of the

capacity release as sought in the Capacity Release Request, using the

current Federal Energy Regulatory Commission interest rate as defined

in 18 C.F.R. Section 154.501(d)(1).

(3) The net present value figures for the proposed

release shall be summed, and such sum shall be the Bid Value.

best bid first (highest Bid Value or other evaluation criteria as

specified by the Shipper in the Capacity Release Offer), until all

offered capacity is awarded. The best Qualified Bid will be awarded

its Maximum Bid volume and any subsequent bids will be awarded up to

their Maximum Bid Volume but no less than their Minimum Bid Volume.

(d) In the event ties exist among Qualified Bids, the

Qualified Bid submitted and received earliest by Trailblazer's

Interactive Web Site (or if Trailblazer's Interactive Web Site is not

available and the Qualified Bid is submitted in writing, the time

Trailblazer received the Qualified Bid) shall be the winning bid.

(e) The following are examples of how (c) and (d) are

applied.