Nautilus Pipeline Company, LLC

Original Volume No. 1

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Effective Date: 12/01/1997, Docket: CP96-790-003, Status: Effective

Original Sheet No. 177 Original Sheet No. 177 : Effective

GENERAL TERMS AND CONDITIONS

22. SHIPPERS' RELEASE OF FIRM CAPACITY con't

Exhibit "A" to its Temporary Capacity

Release Service Agreement provided by

Transporter shall be binding and no further

execution thereof shall be required. Once

the Transporter provides the Replacement

Shipper an Addendum and Exhibit "A" to its

Temporary Capacity Release Service

Agreement, the Replacement Shipper becomes

an existing Shipper with separate firm

contract quantities like any other Shipper

and is subject to the applicable provisions

of Transporter's Tariff, including but not

limited to Transporter's billing and

payment and operation provisions.

22.5 Billing and Payment

(a) Releasing Shippers.

(1) When a Releasing Shipper has released

capacity under Rate Schedule FT-1 or FT-3

on a permanent basis, commencing with the

effective date of the release, pursuant to

subsection 22.4(a) hereof Transporter shall

bill the Releasing Shipper for all capacity

retained pursuant to the provisions of the

Releasing Shipper's Service Agreement. In

this circumstance, the Releasing Shipper

shall not be liable for any amount of

Transporter's invoice to the associated

Replacement Shipper(s) that is unpaid.