U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

First Revised Sheet No. 63A First Revised Sheet No. 63A : Superseded

Superseding: Original Sheet No. 63A







that the calculation is made for all competing Qualified bids and

Prearranged Transactions. This calculation is expressed in the

following formula:



r X 1-(1+i) X u = Net Present Value



Where: i = The interest rate per month;

n = The number of months in the term of

the proposed agreement;

r = The proposed reservation charge per

unit per month or volumetric rate,

if applicable; and

u = The maximum daily quantity of capa-

city requested, in Dth.


(ii) In the event both a contingent Qualified Bid and a non-contingent

Qualified Bid generate the same Net Present Value, U-TOS shall

reject the contingent Qualified Bid.