Trailblazer Pipeline Company

Third Revised Volume No. 1

Effective Date: 01/01/1996, Docket: RP96- 71-000, Status: Effective

First Revised Sheet No. 161 First Revised Sheet No. 161 : Superseded

Superseding: Original Sheet No. 161

GENERAL TERMS AND CONDITIONS

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(b) Trailblazer shall calculate a Bid Value and Unit

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 MMBtu 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 also be

multiplied by: (i) the average monthly transportation flow (in

percentage terms) that the Releasing Shipper stated should be

assumed for bid evaluation hereunder, if any; or (ii) otherwise, ten

percent (10%).

(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 154.67(c)(2)(iii)(A).

(3) The net present value figures for the proposed

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

(4) The Unit Bid Value is defined to equal the Bid

Value divided by the product of: (i) the highest volume of capacity

(in MMBtus) sought in the Qualified Bid for any day; multiplied by

(ii) the release term (in months) in the Capacity Release Request;

and multiplied further by (iii) thirty and four-tenths (30.4).

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

capacity in the Capacity Release Request shall be the winning

Qualified Bid(s). A Qualified Bid may be allocated less than its

Maximum Bid Volume, but in no event shall the Qualified Bid be

allocated less than its Minimum Bid Volume. It is recognized that

this procedure is intended to result in the highest possible total

Bid Value for the Releasing Shipper consistent with the Qualified

Bids, and it is possible that a Qualified Bid with the highest

individual Unit Bid Value may be rejected partially or in its

entirety.

(d) If there is more than one combination of Qualified

Bids with a total Bid Value equal to the Winning Bid Value this

Section 19.10(d) provides the procedure for selecting just one such

combination, and thereby the winning Qualified Bid(s).