Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 11/10/1997, Docket: CP96-712-002, Status: Effective

Original Sheet No. 170 Original Sheet No. 170 : Effective



f. Failure to Match the Best Bid - If Shipper fails to

match the best bid within the time allowed by

Transporter, Shipper's existing FT-1 Service

Agreement will be automatically abandoned at the end

of the term set forth on the FT-1 Service Agreement,

or the quantity of the reduction under the FT-2

Service Agreement will be automatically abandoned at

the end of the applicable Contract Year.

Transporter will enter into a new FT-1 Service

Agreement with the potential Shipper(s) offering the

best acceptable bid(s). The potential Shipper(s)

must execute an FT-1 Service Agreement reflecting

the terms of its bid(s) within ten Business (10)

Days after it is provided by Transporter. If the

potential Shipper fails to execute and return the

FT-1 Service Agreement within the specified time,

the potential Shipper shall forfeit any rights it

may have had to the requested service and

Transporter shall retain the Prepayment submitted by

such potential Shipper(s). The capacity and service

will then be offered to the potential Shipper with

the next best acceptable bid for a period of one (1)

Business Day and the original Shipper will have the

opportunity to match such bid for a period of one

(1) Business Day.


g. Capacity for Which No Acceptable Bids are Received -

If Transporter fails to receive acceptable bids for

all of the posted capacity, then Transporter and

Shipper shall negotiate a rate and term for the

amount of capacity Shipper desires to retain, as set

forth in Shipper's notification to Transporter under

Subsection 12.3.a. above. If Shipper and

Transporter fail to negotiate acceptable terms of a

new FT-1 Service Agreement within ten (10) Business

Days, then the service for the affected capacity

will be automatically abandoned effective as of the

date of the expiration of the term of the original

FT-1 Service Agreement between Shipper and

Transporter, or the date of reduction under a FT-2

Service Agreement.