Empire Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 198 Original Sheet No. 198

GENERAL TERMS AND CONDITIONS

15. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (Cont'd.)

15.4 Bidding Procedure

For the time period stated in Transporter's posting, which shall

be no shorter than ten (10) Business Days, Transporter will

accept service requests from Shippers. A Shipper submitting a

service request in response to a posting pursuant to this

Section 15 shall include, in addition to the information

required by the applicable rate schedule, a request for any

discount sought by the Shipper. The rate for the service

requested by Shipper, as discounted in accordance with the

Shipper's request, and the term of service requested by the

Shipper, shall constitute the Shipper's bid for the capacity

posted by Transporter.

Potential Shippers may revise their bids during the posting

period. Transporter may reject any bid which would require

Transporter to discount below a rate or beyond a discount period

agreeable to Transporter.

Transporter will accept bids from Potential Shippers with

respect to a quantitative portion of Shipper's contract

quantity.

15.5 Determination of Best Bid

Transporter shall review all bids from Potential Shippers

received pursuant to Section 15.4, which have not been rejected

by Transporter, to determine which bid is the Best Bid(s). For

purposes of this Section 15.5, the "Best Bid(s)" shall be the

bid(s) yielding to Transporter the highest net present value.

Net present value shall be calculated on the basis of the

present value of the Reservation Charge per unit to Transporter.

In making the determination of net present value Transporter

shall apply the same discount factor to all bids. Transporter

shall disclose in each posting the discount factor to be used

for such posting. If Transporter receives two (2) or more

mutually exclusive Best Bids during the posting period that are

not matched by Shipper, Transporter will consider the bid

submitted earliest in time to be the Best Bid.