Phillips Gas Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 47-003, Status: Effective

Original Sheet No. 62A Original Sheet No. 62A : Effective

21.6 Awarding of Released Capacity:

(a) All capacity available for release shall be allocated

based upon one of the following methods, as determined

by Shipper.

(1) Highest Present Value: Capacity shall be

allocated based upon the highest present value of

the rate per unit bid, in accordance with the

following formula:

-N

(R per unit) x 1 - (1 + i) = present value per unit

Where: i = interest rate per month

using the current

Commission interest rate as

defined in 18 C.F.R. Section

154.67(c)(2)(ii)(A),

N = term of the agreement in

months, and

R = the rate bid on a monthly

basis (the reservation fee, if

a two-part rate, and the

commodity rate, if a one-

part rate).

In the event that bids of equal value exceed available

capacity, the capacity shall be allocated by means of any

non-discriminatory objective standard designated by the

Releasing Shipper and included in its terms and

conditions for the release. If Releasing Shipper makes

no such designation, then the capacity shall be allocated

by means of a lottery, with all capacity being allocated

to the winner(s). The lottery will be conducted by

PGPL on a non-discriminatory basis and on one

business day's notice to the affected parties, who will

have the right to attend.