Phillips Gas Pipeline Company

First Revised Volume No. 1

Effective Date: / / , Docket: RS92- 47-001, Status: Effective

Original Sheet No. 59 Original Sheet No. 59 : Superseded

(e) The Economic Value of a bid shall be defined as

the total net present value of the reservation charge

bid for the release of transportation capacity. The

net present value shall be computed from the

monthly demand and capacity charge or reservation

revenues to be received over the term of the

release contract, using the discounted cash flow rate

of return methodology, with the rate of discounting

to be published on PGPL's EBB, as amended from

time to time.

21.3 Applicability: This Section 21 is applicable to any Shipper

who has a Service Agreement under Rate Schedule FT-1

contained in this First Revised Volume No. 1 Tariff and

who elects to release, subject to the Capacity Release

Program set forth herein, all or a portion of its

transportation rights. Shipper shall have the right to

release any portion of the firm herein rights held under a

Service Agreement, but only to the extent that the capacity

so released is acquired by a Potential Replacement

Shipper pursuant to the provisions of this Section 21.

PGPL's EBB will also provide the capability for any

Potential Replacement Shipper to post its offer to

purchase capacity.

21.4 Notice Requirement: During any period in which Shipper

wishes to release its firm capacity hereunder (Releasing

Shipper), availability of such capacity will be noticed as

follows:

(a) Releasing Shipper shall provide PGPL with the

following information:

(1) maximum quantity of firm daily capacity

available,

(2) term of availability