Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 10/01/1993, Docket: RS92- 12-003, Status: Effective

Original Sheet No. 249 Original Sheet No. 249 : Superseded

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

(d) Any such approved Shipper desiring the capacity may submit a

bid for the capacity under the conditions posted in

conjunction with a Release Notice. Any such bid shall be

considered a service request pursuant to Article 8.1 of

these General Terms and Conditions. The Shipper desiring

capacity must submit a bid to WNG via WNG's EBB prior to the

expiration of the bidding period. Bids for capacity may not

exceed WNG's posted maximum rate including ACA, GRI or other

surcharges. WNG will post a volumetric equivalent of its

maximum reservation charge on Sheet 6 or 6A for each firm

service. Any marketing fee to be earned by WNG may not be

included in a maximum rate bid by a Replacement Shipper.

Bids for capacity will be posted on WNG's EBB with the

bidder's identity deleted.

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

to the close of the posting 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withdrawn.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. 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 154.67 of the

Commission's regulations or successor regulation to evaluate

all bids.