Arkansas Western Pipeline Company

First Revised Volume No. 1

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Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 21 Original Sheet No. 21 : Superseded

14.4 To be a valid bid, the potential customer must provide all

information in the format contained in the applicable

Section 4 of Rate Schedule FTS or Section 3 of Rate Schedule

ITS of Transporter's Tariff, Original Volume No. 1. In

addition, the potential shipper must pay Transporter a bona

fide prepayment equal to the lesser of ten thousand dollars

($10,000.00) or one (1) month's prepayment of the Monthly

Demand Charge determined based on the potential shipper's

requested price and the desired contractual quantity. If

such potential shipper's bid is accepted by Transporter and

is not matched by the existing Shipper then, upon

commencement of service, the bona fide prepayment shall be

credited to such potential shipper's initial invoice for

such service rendered. If potential shipper's bid is

matched or if the potential shipper fails to satisfy all of

Transporter's tariff provisions governing Shipper

eligibility, Transporter will refund the potential shipper's

bona fide prepayment. The bona fide prepayment will not be

refunded if the bid is withdrawn by the potential shipper.

Transporter may reject all bids which would require

Transporter to discount below a rate and discount term

agreeable to Transporter, such rejections shall be made in

a nondiscriminatory manner.

14.5 Transporter shall review all bids from potential shippers

received pursuant to subsection 14.3 which have not been

rejected by Transporter, to determine which bid is the "best

bid." For purposes of this Section, the "best bid" shall be

the bid which yields to Transporter the highest net present

value. Net present value shall be calculated on the basis

of the present value of the Monthly Demand Charge per unit

to Transporter. Such net present value shall be determined

by discounting the per unit amount using a discount rate

equal to Transporter's allowed overall rate of return

applied over the term of potential shipper's bid. In

determining which bid is the best bid, the "bid cap" for the

term of the bid shall be ten (10) years.

14.6 Upon receipt from Transporter of the "best bid", Shipper

shall have the right for a thirty (30) day period in which

to notify Transporter whether the Shipper is willing to

match the "best bid." Failure to notify Transporter within

said thirty (30) day period constitutes a non-revocable

waiver of Shipper's right to match the "best bid." In order

to match the "best bid", the Shipper, at the Shipper's

option, may elect either to agree to a rate equal to the

rate set forth