High Island Offshore System, L.L.C.

Third Revised Volume No. 1

Effective Date: 09/01/2000, Docket: RP00-439-000, Status: Effective

First Revised Sheet No. 132 First Revised Sheet No. 132 : Effective

Superseding: Original Sheet No. 132

GENERAL TERMS AND CONDITIONS

(Continued)

17.6 Bidding Procedures.

17.6(a) Any person that has prequalified as a prospective Replacement

Shipper under the provisions of subsection 17.11 of this Section

17 ("Qualified Bidder") may submit a completed bid ("Qualified

Bid") for available capacity under a Release Proposal posted

pursuant to subsection 17.5(a) of this Section 17, during the

applicable posting period. For purposes hereof, the applicable

"bid period" shall be the same as the posting period specified in

subsection 17.5(a)(i)-(ii) of this Section 17.

17.6(b) HIOS will receive Qualified Bids for the posted Release Proposal

for the entire initial or successive posting period. A Qualified

Bid may be communicated to HIOS by mail, facsimile, or HIOS'

Interactive Internet Website. The date of receipt will be

recorded for each Qualified Bid.

17.6(c) A Qualified Bid must be submitted on the HIOS Qualified Bid Form,

as set forth on Sheet Nos. 184-186 of this Tariff, and must

include the following information:

(i) The Qualified Bidder's legal name and the name, title,

address, telephone number, and facsimile number of the

person responsible for authorizing the acquisition of

capacity;

(ii) Identification of the posted Release Proposal for which

the Qualifying Bid is being made;

(iii) The amount of capacity being requested, by receipt point,

delivery point, and in total, within the limits specified

in the Release Proposal;