Pacific Interstate Offshore Company

Second Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 56 Original Sheet No. 56 : Effective

GENERAL TERMS AND CONDITIONS (cont'd)

17. CAPACITY RELEASE (Cont'd)

17.2 Competetive Bidding Procedure (cont'd)

The winning bid shall be posted on Transporter's EBB

(including name of bidder) within five business days

after the close of bidding, or whatever longer

period of time is reasonably necessary to determine

a Replacement Shipper's qualifications under the

provisions of this Tariff. In the event that the

winning bid is submitted by a person that has

prequalified under Section 17.14 hereof, the winning

bid shall be posted on Transporter's EBB within

three business days after the close of bidding.

17.3 Prearranged Replacement Shippers: Releasing

Shipper shall have the right to tender an offer for

all or a portion of the released capacity accepted

by a potential Replacement Shipper otherwise

satisfying the terms of this Tariff. Releasing

Shipper shall include with the offer the name of the

prearranged Replacement Shipper as well as all of

the other information required by Section 17.1

hereof. The offer to release shall be posted for

the minimum time periods specified in Section 17.1.

Such potential Replacement Shipper found by the

Releasing Shipper shall have the right of first

refusal, exercisable within three business days of

being informed by Transporter that a higher bid was

submitted, to match the highest price of any bid for

such capacity, based on the criteria of the

prearranged transaction. In the event the

Replacement Shipper found by the Releasing Shipper

matches the highest bid, capacity shall be allocated

to that Replacement Shipper. In the event a