Pacific Interstate Offshore Company

Second Revised Volume No. 1

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Effective Date: 01/01/1994, Docket: RS92- 73-001, Status: Effective

Original Sheet No. 54 Original Sheet No. 54 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

17. CAPACITY RELEASE (Cont'd)

17.1 Procedure for Making Offer to Release: (Cont'd)

a. (cont'd)

9. Whether, if two or more persons submit

bids of equal value, the released capacity

will be allocated (1) pro rata; (2) to

the person first submitting a bid or (3)

by lottery.

b. The amount of capacity offered for release at

each delivery point shall not be less than 100

MMBTU per day, so as to avoid measurement

difficulties relative to smaller amounts and

disproportionate administrative burdens.

c. Minimum posting periods shall be as follows:

1. For capacity to be released for a term of one

month to three months, the posting must be for

at least three days prior to the date capacity

will become available.

2. For capacity to be released for a term of more

than three months but less than two years, the

posting must be for at least 10 days prior to

the date the capacity will become available.

3. For capacity to be released for a term of two

years or longer, the posting must be for at

least 15 days prior to the date the capacity

will be available.

4. The above posting periods shall not be

applicable in the case of a prearranged

transaction at the maximum rate pursuant to

Section 17.3, or to any release pursuant to

17.12 or 17.13.