Ngo Transmission, Inc.

Original Volume No. 1

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Effective Date: 11/22/2003, Docket: RP04- 67-000, Status: Effective

Original Sheet No. 76 Original Sheet No. 76 : Effective

(b) Bids shall be submitted to Transporter in writing, in

accordance with the communication procedures set forth in

Section 16 of these General Terms and Conditions. Such bids

shall be binding on Bidder. Upon conclusion of the Bidding

Period, Transporter shall evaluate the bids in accord with

the net present value formula set forth in Section 11 for

firm service for the evaluation of bids under Transporter's

capacity release mechanism; provided that the term used for

purposes of the formula will be the term proposed by the

Bidder and provided further that Transporter shall have no

obligation to accept a bid for less than the filed maximum

reservation rate.

(c) Within seven (7) Business Days of the close of the Bidding

Period, Transporter shall notify Shipper of the acceptable

bid, if any, having the highest present value to Transporter

("Highest Bid"). Shipper shall have five (5) Business Days

after receiving notice to notify Transporter in writing as

to whether it will match the Highest Bid acceptable to

Transporter. Shipper's notification of its election to match

the Highest Bid is contractually binding on Shipper. If the

Shipper elects to match the Highest Bid, then it must

execute a new firm service agreement that contains the terms

of that Highest Bid, within five (5) Business Days after

such agreement is tendered by Transporter; provided,

however, that Shipper shall not be required to pay any rate

higher than the maximum applicable rate.

(d) If Transporter receives no acceptable bids on the capacity,

then Shipper may continue to receive service at the

applicable maximum rate on a month-to-month basis or at such

other rate and for such term on which Transporter and

Shipper mutually agree.

7.2 Posting of Capacity: If a Shipper elects to terminate its firm

service agreement without invoking the right of first refusal, or

if capacity is not awarded in the right of first refusal process,

the availability of the capacity will be posted, or otherwise made

available for contracting, by Transporter and will be awarded on a

basis consistent with the applicable Rate Schedule.

8. OPERATIONAL FLOW ORDERS

8.1 Circumstances Warranting Issuance: Transporter shall have the

right to issue Operational Flow Orders (OFO) as specified in this