NorAm Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 02/01/1995, Docket: RP94-343-000, Status: Effective

Original Sheet No. 304 Original Sheet No. 304 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

section and upon Transporter's submission of a

Service Agreement based upon the bid terms.

The potential Shipper shall submit a deposit or

prepayment pursuant to Sections 10 or 14 of these

General Terms and Conditions, as required by

Transporter, within twenty-four (24) hours of receipt

of notice from Transporter that it submitted the best

bid. If the bid is successful and service to such

party commences, such payment shall be treated as

provided in the applicable Section. If the bid is

successful but the bidding Shipper fails to execute a

Service Agreement in conformance with its bid,

Transporter may retain the payment in addition to any

other remedies to which it may be entitled. If the

existing Shipper matches the bid and continues its

service, Transporter will return to the potential

Shipper the payment. Transporter may reject all bids

which would require Transporter to discount below a

rate and discount term acceptable to Transporter.

21.6 Best Bids. For purposes of this section, the best

bid shall be that bid which generates the highest net

present value, using a 10% discount factor, based on

the rate bid (reservation or demand component), the

applicable quantity(ies) and term or period bid upon.

In utilizing the best bid for purposes of this

Section 21, Shipper shall not be required to match

any term exceeding ten (10) Years.

21.7 Failure to Execute. Failure of the existing Shipper

to execute and return the new Service Agreement

within fifteen (15) Days of receipt shall constitute

an irrevocable waiver of such Shipper's right to

match the bid; provided, however, Shipper shall not

be required to match a rate higher than the maximum

rate chargeable by Transporter for delivery to such

Shipper's Point(s) of Delivery or a term greater than

ten (10) Years.

21.8 Lack of Conforming Bids. If Transporter does not

receive any bids pursuant to these provisions, or

Transporter rejects all bids received pursuant to

Section 21.5 above, Transporter shall so notify the

existing Shipper within ten (10) Days following the