Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-173-004, Status: Effective

Sub First Revised Sheet No. 79 Sub First Revised Sheet No. 79 : Effective

Superseding: Original Sheet No. 79

GENERAL TERMS AND CONDITIONS

(Continued)

Tariff, by 30.4167; provided further,

the volumetric rate for the release applies only

to the reservation portion of the rate.

(c) Criteria for Best Offer

The following methodologies may be

chosen by the Releasing Shipper to be used in

evaluating the bids: (1) highest rate, (2) net

revenue, (3) present value. In the event the

Releasing Shipper does not specify criteria for

the Best Offer in its Notice Of Intent To

Release Capacity, the following criteria shall

apply:

(i) The Best Offer shall be the

bid that offers to purchase the full

quantity of capacity at the maximum

applicable rate for the full term specified

by the Releasing Shipper.

(ii) In the event that the

criteria in subsection (1) fails to produce

a single Best Offer, the Best Offer shall

be the bid that produces the highest Net

Present Value.

(iii) In the event that the

criteria in subsection (2) fails to produce

a single Best Offer, the Best Offer among

those determined to be the Best Offer in

subsection (2) shall be the bid submitted

first in time in accordance with Section

10.4(c).

The Releasing Shipper must specify the

maximum firm commodity charge. Maximum and

minimum rates specified by the Releasing Shipper

must include the reservation charge and all

demand surcharges, as a total number or as

stated separately. Releasing shipper may

specify dollars and cents or percentages of the

maximum tariff rate in the denomination of bids.

Bids should comport with Releasing Shipper's

choice.