Norteño Pipeline Company

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 163 Original Sheet No. 163 : Superseded

RATE SCHEDULE RCS

FIRM TRANSPORTATION SERVICE - RELEASED CAPACITY

(continued)

If more than one bid has the same value as

determined pursuant to the terms of determining

the best offer set forth herein, then Released

Capacity shall be awarded to Bidding Shipper(s) on

the basis of the tie-breaking method designated by

the Releasing Shipper in its Capacity Release

Notice, or in the absence of such designation, by

means of a lottery, until all the Released

Capacity is awarded to Bidding Shippers. A

Bidding Shipper may reject an award of a lesser

quantity of Released Capacity than it bid for.

The Releasing Shipper shall not be entitled to

reject any bid selected as set forth herein.

(c) In no event will an award of Released Capacity be

made for a period exceeding the term of the

Releasing Shipper's Transportation Service

Agreement, or a period of less than one (1) gas

flow Day as defined in the General Terms and

Conditions.

(d) Norte¤o shall select the Bidding Shipper that is

to be awarded the Released Capacity in accordance

with the criteria set forth in this Section 9.

Norte¤o shall notify the Releasing Shipper of the

selection, and the Releasing Shipper shall have

one (1) business day from receipt of notice to

notify Norte¤o if the Releasing Shipper has any

reason to believe that the selected Replacement

Shipper should not be awarded the capacity. Upon

receipt of such notice, Norte¤o shall evaluate the

concerns of the Releasing Shipper, selecting

another Replacement Shipper that meets the

selection criteria. If Norte¤o receives no notice

from the Releasing Shipper within one business day

from its receipt of notice of the selection of the

Replacement Shipper, Norte¤o shall award the

Released Capacity. Norte¤o shall not be liable to

Releasing Shipper for any damages, liability,

lawsuits, or other harmful consequences resulting

from the selection of a Replacement Shipper.