Florida Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RS92- 16-003, Status: Effective

Original Sheet No. 186 Original Sheet No. 186 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(a) Acceptable Bids -- Transporter shall review all bids

on a not unduly discriminatory basis and determine

which bids, if any, are acceptable. Transporter shall

have no obligation to accept any bid at less than

maximum rate. To the extent Transporter elects to

accept bids at other than the maximum rate,

Transporter shall award the capacity or portion

thereof based on the request with the highest present

value of the reservation charges for the subject

capacity. Transporter shall prorate the available

capacity among requests yielding an equivalent net

present value. Further, Transporter shall have no

obligation to accept any bid if Transporter is unable

to provide the requested capacity and service without

adversely affecting the availability of total firm

capacity on Transporter's system.

(b) If no bids acceptable to Transporter are received,

Transporter will notify Existing Shipper of the

maximum bids received or the fact that no bids were

received. Transporter will then negotiate with the

Existing Shipper with regard to the rate, term, and

other conditions under which Transporter will continue

to provide service to the Existing Shipper. Such

negotiations will continue for a 30-day period

commencing on the date that Transporter informs the

Existing Shipper that it has received no acceptable

bids. The Existing Shipper will have the right, in

the absence of any bids acceptable to Transporter, to

retain the right to capacity and service by offering

within the 30-day negotiation period to acquire the

capacity at the maximum rate applicable to such

capacity for such term as Shipper specifies, provided

that if Shipper specifies a term of less than one

year, then such agreement shall be subject to

pregranted abandonment as provided herein.

4. If Transporter notifies the Existing Shipper of an

acceptable bid or bids received pursuant to Section 20B.3

above, the Existing Shipper will have 30 days following the

date of such notice to provide Transporter notice of the

Existing Shipper's decision to match the terms of the best

acceptable bid for such capacity, including the rate and