Texas Gas Transmission Corporation

First Revised Volume No. 2-A

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Effective Date: 11/01/1993, Docket: RP93-106-001, Status: Suspended

Sub Original Sheet No. 129D Sub Original Sheet No. 129D : Suspended

GENERAL TERMS AND CONDITIONS

(Continued)

Best bid will be determined based on what

will yield to the Releasing Customer the

highest net present value, using a 10%

discount factor, of the reservation

charge (reservation charge x CD) the

Replacement Customer is willing to pay

for the term bid. If several bids yield

the same net present value, the capacity

will be awarded to the bid which yields

to the Releasing Customer the highest net

present value over the shortest period of

time. After this process, if there are

still several bids that yield the same

net present value, then the capacity will

be awarded to the bid submitted first in

time. When determining the best bid, any

marketing fee to be retained by Pipeline

will be subtracted from the affected bid

when comparing it to other bids where no

marketing fee is involved.

(f) Other Information Posted to EBB

(i) Offers to purchase capacity will be

posted by Pipeline to its EBB, upon the

receipt of such information from

interested parties.

(ii) Pipeline will post on its EBB its avail-

able firm and interruptible capacity and

the terms and conditions applicable to

it.

29.4 Posting of Capacity Available for Release and Bidding

Procedure

(a) Capacity Release Notice

In order to initiate the release and assignment

of capacity rights, Releasing Customers must

complete and execute a Capacity Release Notice