High Island Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 04/07/1999, Docket: GT99- 17-000, Status: Effective

Original Sheet No. 127 Original Sheet No. 127 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

17.4(i) At Releasing Shipper's option, and in lieu of HIOS

implementing the "best bid" determination stated in

subsection 17.7, Releasing Shipper may specify in

the Release Proposal one of the following bid

evaluation methodologies: (i) highest rate, (ii)

net revenue, or (iii) present value. A Release

Proposal submitted specifying one of these methods

may be accorded the timeline treatment described in

Section 17.5. However, the Releasing Shipper may

choose another bid evaluation method, but this

request shall be accorded the timeline treatment

described in Section 17.5 only at the discretion of

HIOS. Such bid evaluation methods shall be

objectively stated, applicable to all Replacement

or Prearranged Shippers and not unduly discrimi-

natory and shall enable HIOS to rank the bids

received by utilizing the weight assigned by

Releasing Shipper to each element of the Releasing

Shipper's Notice.

17.4(j) Whether contingent bids will be accepted and if so,

for what time period each contingent bidder will be

allowed to eliminate the contingency; and, if not

eliminated, all details concerning the evaluation of

other bids, including the time period when the next

highest bidder will be obligated to acquire the

capacity.