Transwestern Pipeline Company

Second Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-360-001, Status: Effective

Tenth Revised Sheet No. 95F Tenth Revised Sheet No. 95F : Effective

Superseding: Ninth Revised Sheet No. 95F

GENERAL TERMS AND CONDITIONS

(continued)

All releases more than 31 days or less than one year, prearranged or otherwise, must be posted for

bidding.

b) Third Party Bid: For contract terms of more than thirty-one (31) days, but less than one year, any

third party may submit a bid for the released capacity by offering a better bid than the posted bid

for said capacity. Third party bids will be accepted in accordance with Section 30.5.

For contract terms of one year or more, any third party may submit a bid for the released capacity by

offering a better bid than the posted bid for said capacity, with rates not to exceed the maximum rate

which may be collected by Transporter. Third party bids will be accepted in accordance with Section

30.5. The minimum open season is three business days. Evaluation period will be in accordance with

Section 30.5.

c) Third Party Obligation: Any third party bid shall be identical to the Pre-Arranged Deal, excluding

those terms which are subject to bidding as set forth in the offer to Release Capacity. Such bid

shall be subject to a Posting and Bidding procedure by the Pre-Arranged Shipper.

d) Bid Evaluation: Subject to the Pre-Arranged Shipper's Posting and Bidding procedure, capacity shall

be allocated to such third party (or parties, if the winning bids are for portions of the total

capacity available) submitting the best bid, as determined by Transporter, based upon the Releasing

Shipper's criteria. In the event two or more third parties submit equivalent best bids, as

determined by Transporter, based upon the Releasing Shipper's criteria and such bids are for more

than the total available capacity, the capacity shall be allocated by means of any non-

discriminatory, objective standard designated by Releasing Shipper, and included in the Offer to

Release Capacity (or, if no designation, then by means of a pro rata allocation).

e) Pre-Arranged Shipper Posting and Bidding procedure: In the event a third party(ies) submits a better

bid than the Pre-Arranged Shipper, Transporter shall communicate, in accordance with Section 30.5, to

the Pre-Arranged Shipper, that a third party(ies) has submitted a better bid. The Pre-Arranged

Shipper shall have the right to match said offer during the minimum time period set forth in Section

30.5.

If the Pre-Arranged Shipper chooses to match the better bid, then Transporter shall allocate said

capacity to the Pre-Arranged Shipper. In the event the Pre-Arranged Shipper declines to match the

better bid, the Pre-Arranged Shipper shall have no further right to said capacity, and Transporter

shall assign said capacity to the successful bidding third party(ies).

The award shall be posted and the contract issued in accordance with Section 30.5.