Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 175 Original Sheet No. 175

GENERAL TERMS AND CONDITIONS

12. CAPACITY RELEASE (Cont'd.)

12.5 Determination of Best Bid

(a) Upon the conclusion of the posting period, Transporter

shall determine the "best bid" for the capacity described

in an Existing Shipper's Notice by applying the standard

described by the Existing Shipper pursuant to Section

12.2(a)(xi) hereof, or, if no standard was so described,

Transporter shall make such determinations according to

which bid would generate the revenue stream with the

greatest net present value, without assuming any

throughput, applying as the discount rate the rate under

Section 154.501 of the Commission's regulations.

Transporter is required to meet the capacity release

timelines for processing capacity reallocations only if the

Existing Shipper's best bid methodology is either

(i) highest rate, (ii) net revenue, including the default

standard provided by this Section 12.5(a), or (iii) present

value.

(b) Unless its bid is matched by a Prearranged Shipper, the

released capacity shall be awarded to the Potential Shipper

submitting the "best bid". If more than one Potential

Shipper submits bids that each qualifies as a "best bid",

the released capacity will be awarded to the Potential

Shipper who submitted the "best bid" first in time, unless

a different tie-breaking method is specified by the

Existing Shipper.

(c) Any contingencies in bids must be satisfied during the

evaluation period specified in Section 12.3(c). If there

have been multiple bids meeting minimum conditions,

Transporter will award the bids, best bid first, until all

the offered capacity is awarded.