Sg Resources Mississippi, L.L.C

Original Volume No. 1

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Effective Date: 03/01/2008, Docket: RP08-184-000, Status: Effective

Original Sheet No. 121 Original Sheet No. 121 : Pending






(c) SGRM shall evaluate the bids in accordance

with the provisions of Section 4.7 and determine the best bid in

accordance with the timelines set forth in Section 4.3 herein.

SGRM shall notify Releasing Customer, the best bidder, and any

designated Pre-arranged Replacement Customer of such determination

in accordance with the timelines set forth in Section 4.3 herein.

If there is a designated Pre-arranged Replacement Customer, it may

exercise its right to match such best bid by providing written

notice of such exercise to SGRM and Releasing Customer in

accordance with the timelines set forth in Section 4.3 herein.

After the Replacement Customer is selected, SGRM will finalize an

appropriate Addendum to the Capacity Release Umbrella Agreement in

the form contained in this FERC Gas Tariff. SGRM will provide a

copy of this Addendum to the Replacement Customer via facsimile,

at which time the Replacement Customer will have the same rights

and obligations as any other existing Customer on SGRM's system.

Following implementation of the release, SGRM shall post notice of

the winning bidder on the Internet Web Site.


4.7 Best Bid. When SGRM makes awards of capacity for

which there have been multiple bids meeting minimum conditions,

SGRM shall award the bids, best bid first, until all offered

capacity is awarded. The capacity being awarded represents the

Maximum Daily Injection Quantity, Maximum Daily Withdrawal

Quantity, or Maximum Storage Quantity. These quantities are

separate parts of the capacity and are awarded until one of the

quantities is fully awarded, at which point all capacity is deemed

to be fully awarded. SGRM shall evaluate and determine the best

bid among those otherwise consistent with any terms and conditions

specified by the Releasing Customer as follows:


(a) SGRM shall apply the standard or criteria for such

determination specified by the Releasing Customer, including the

standard to be used for breaking ties. Any standard or criteria

so specified must be objective, economic, not unduly

discriminatory, not contrary to applicable provisions of this FERC

Gas Tariff, applicable to all prospective Replacement Customers

and require SGRM in applying such standard to exercise no more

than a ministerial function. The Releasing Customer shall

indemnify and hold SGRM harmless from and against all demands,

losses, claims, expenses, causes of action and/or damages suffered

or incurred by SGRM arising out of or related to any determination

of a "best bid" pursuant to a standard specified, supplied,

approved or provided by Releasing Customer.


(b) In default of Releasing Customer specifying a bid

evaluation standard, SGRM shall determine the bid or bids

generating 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

default of Releasing Customer specifying a method to break ties

priority will be given first to the bid with the shortest term,

and next to the bid submitted first in time.