Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 161 Original Sheet No. 161 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

8. BIDS FOR RELEASED CAPACITY:

A bid for Released Capacity may be submitted by a

Bidding Shipper to Norte¤o at any time during the

posting period for a release of firm capacity. Each

bid for Released Capacity must include the following:

(a) the Bidding Shipper's legal name, address, and the

name, title and telephone number of the individual

responsible for authorizing the bid;

(b) the legal name and Service Agreement number of the

Releasing Shipper whose released capacity is being

bid for;

(c) the quantity of daily firm capacity being bid for,

stated in MMBTUs;

(d) the Receipt and Delivery Points, and firm capacity

at each such point, being bid for;

(e) the effective date and period of release being bid

for;

(f) the reservation and commodity rates Bidding

Shipper is willing to pay;

(g) any other applicable conditions of the bid; and

(h) whether the Bidding Shipper is an affiliate of the

Releasing Shipper or of Norte¤o.

A Bidding Shipper may withdraw its bid at any time

prior to the expiration of the bidding period. Any

Bidding Shipper that withdraws a bid may not

subsequently submit a lower bid for that Released

Capacity. Any bid for Released Capacity not withdrawn

as provided herein shall be binding on the Bidding

Shipper. All qualified bids for Released Capacity, but

not the names of Bidding Shippers, will be posted on

the Electronic Bulletin Board.