Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 03/01/1996, Docket: RP96-124-000, Status: Effective

Second Revised Sheet No. 244 Second Revised Sheet No. 244 : Superseded

Superseding: First Revised Sheet No. 244

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

A bidder may withdraw its bid for capacity at any time prior

to the close of the bidding period specified in Article

11.4(b), but may only submit a new bid for that released

capacity having a higher economic value. If a person submits

multiple bids, and withdraws one, all bids for the same

released capacity or any portion thereof are considered

withdrawn.

If the Releasing Shipper has specified a procedure for

determining the best bid, WNG will utilize the Releasing

Shipper's desired procedure; otherwise, WNG will consider only

the demand component (restated to the demand basis if the bid

is volumetric) and the term of bids, in valuing the bids. A

volumetric rate may not exceed the 100% load factor equivalent

of the maximum reservation charge for the applicable firm

service. Such maximum volumetric rates are stated on Sheet 6A

of this Gas Tariff. The value of offers will be calculated on

a net present value basis per Dth of firm capacity. WNG will

use a discount rate equal to the interest rate applicable to

pipeline refunds pursuant to Section 154.501 of the

Commission's regulations or successor regulation to evaluate

all bids.