Panhandle Eastern Pipe Line Company

First Revised Volume No. 1

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Effective Date: 02/01/2002, Docket: RP00-395-003, Status: Effective

Sixth Revised Sheet No. 279 Sixth Revised Sheet No. 279 : Superseded

Superseding: Fifth Revised Sheet No. 279

GENERAL TERMS AND CONDITIONS

(Continued)

(iii) If the Releasing Shipper specifies a bid

evaluation methodology other than highest rate,

net revenue or present value, or a permanent

release or any other special conditions, the

above timelines shall apply; provided, however,

one additional Business Day will be added to

the evaluation period. Such extended

evaluation period will cause Gas flow to be at

least one day later than Gas could flow under

the timeline set forth in Section 15.4(d)(i)or

Section 15.4(d)(ii).

(e) A party may submit only one bid at a time in response

to a Release Notice. Once a party has submitted a

bid, it may withdraw the bid through the Messenger

system at any time prior to the close of the posting

period specified in Section 15.3(c) without prejudice

to its submitting another bid with an economic value

equal to or greater than the economic value of the

withdrawn bid. If a bid is not withdrawn prior to

the close of the posting period, the bid shall be

binding on the party submitting the bid, subject to

the satisfaction of any contingencies the Releasing

Shipper permits to be satisfied after the close of

the bidding period.

(f) Bids to accept assignment will be posted on the

Messenger system with any contingencies identified

and with the bidder's identity deleted.

15.5 Selection of Replacement Shipper

(a) The Addendum to the Capacity Release Service

Agreement will be issued to the Replacement Shipper

whose bid provides the greatest economic value, as

defined by the Releasing Shipper in accordance with

Section 15.2(b) or, if the Releasing Shipper does not

specify a method of determining economic value, the

economic value will be determined by utilizing the

present value method, and whose bid meets all the

conditions placed upon the assignment by the Releasing

Shipper as provided for in Section 15.2(b), provided

that if the Releasing Shipper has permitted contingent

bids, the selection of a Replacement Shipper may be

delayed in accordance with the contingencies permitted

in the Release Notice. If the bids of two or more

Replacement Shippers provide the same economic value

and both meet all the conditions placed upon the