Kansas Pipeline Company

Original Volume No. 1

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Effective Date: 05/11/1998, Docket: CP96-152-009, Status: Effective

Original Sheet No. 256 Original Sheet No. 256 : Effective

GENERAL TERMS AND CONDITIONS (continued)

14.5 Selection of Replacement Shipper

(a) The Addendum to the Capacity Release Service

Agreement will be provided within the time period

specified in Section 14.3 to the Replacement Shipper

whose bid provides the greatest economic value, as

defined by the Releasing Shipper in accordance with

Section 14.2(b) or, if the Releasing Shipper does not

specify a method of determining economic value, the

economic value will be determined by utilizing the

present value, and whose bid meets all the conditions

placed upon the assignment by the Releasing Shipper

as provided for in Section 14.2(b), provided that

if the Releasing Shipper has permitted contingent

bids, the selection of a Replacement Shipper may be

delayed in accordance with the contingencies

permitted in the Release Notice. If the bids of two

or more Replacement Shippers provide the same

economic value and both meet all the conditions

placed upon the assignment, Kansas Pipeline will

tender the Addendum to the Capacity Release Service

Agreement to the Replacement Shipper who submitted

its bid first unless, in accordance with Section

14.2(b), the Releasing Shipper has specified an

alternative method for breaking ties, in which event

the method specified by the Releasing Shipper shall

be used. If there are multiple bids meeting the

minimum conditions, Kansas Pipeline shall rank

the bids and award the bids, best bid first, until

all offered capacity is awarded.

(b) If the Releasing Shipper has notified Kansas Pipeline

in the Release Notice that it has arranged a

Designated Replacement Shipper who has agreed to

pay less than the applicable maximum rate for the

service, and no party submits a bid for the

assignment providing greater economic value, Kansas

Pipeline will provide the Addendum to the Capacity

Release Service Agreement to the Designated

Replacement Shipper for execution.

(c) If the Releasing Shipper has notified Kansas Pipeline

in the Release Notice that it has arranged a

Designated Replacement Shipper who has agreed to pay

less than the applicable maximum rate for the