Sabine Pipe Line Company

Second Revised Volume No. 1

Effective Date: 12/31/1996, Docket: RP97-205-000, Status: Effective

1st Rev Original Sheet No. 265 1st Rev Original Sheet No. 265 : Superseded

Superseding: Original Sheet No. 265

10.9 Determination of Best Bid

At the close of the bid period, Sabine will review each

bid to determine whether a bid will be deemed eligible

for consideration as the best bid. Any bid deemed

ineligible shall be eliminated from consideration.

Bids will be deemed ineligible if:

a) Bidder has not prequalified in accordance with

Subsection 10.13.

b) Bidder has not submitted its bid prior to the

deadline posted by Sabine on its electronic

bulletin board.

c) The Bid for Released Capacity does not meet the

minimum criteria established in the Releasing

Shipper's Offer.

Unless the Releasing Shipper's Offer specifies

different criteria for determining the best bid, each

bid deemed eligible for consideration will be evaluated

by multiplying the bid price times the quantity bid.

Bids for a term of more than one (1) month that vary in

price or term shall be evaluated on the basis of their

total present value based on the current monthly

interest rate as defined by the FERC in 154.501(d) of

the Commission's regulations.

The best bid, as determined herein or pursuant to the

objective criteria set forth in the Releasing Shipper's

offer, shall be subject to the rights of a Prearranged

Bidder to match the bid in accordance with Subsection

10.11.

If no bids meet the minimum requirements of the

Releasing Shipper's Offer, Sabine shall calculate the

best bid pursuant to this section or the criteria set

forth in the Releasing Shipper's Offer and make the

best bid available to the Releasing Shipper, who will

have the option to refuse or accept such bid.

If there is a tie for the best bid, and there is no

Prearranged Bidder who has agreed to match the best