Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

Third Revised Sheet No. 514 Third Revised Sheet No. 514

Superseding: Substitute Second Revised Sheet No. 514

GENERAL TERMS AND CONDITIONS

(continued)

2. REQUEST FOR TRANSPORTATION SERVICE (continued)

(f) In the event Algonquin receives two (2) or more bids that qualify as the "best

bid" (i.e., two (2) or more bids that produce an equivalent net present value),

capacity subject to the open season will be allocated between or among such

requests pro rata based on the MDTQ requested; provided, however, if a bidder

offered capacity on a pro rata basis pursuant to this Section 2.5(f) fails to

execute a service agreement within (i) five (5) Business Days for service with a

contract term of less than one (1) year or (ii) fifteen (15) days of the tender of

a service agreement by Algonquin for service with a contract term of one (1) year

or longer, Algonquin shall deem such bidder's request to be null and void and

shall reallocate the available capacity pro rata based on the MDTQ requested to

such remaining best bids in accordance with this Section 2.5(f).

(g) Within twenty-four (24) hours after an award of capacity under this Section 2.5,

Algonquin shall post on the LINK® System the best bid(s), showing the net present

value for such best bid(s). In the event the best bid is a discounted rate that

is less than the applicable maximum tariff rate and Algonquin accepts a bid at

less than the maximum rate as the winning bid, then the bidder must submit a

discount request form online via the LINK® System and Algonquin must approve such

discount request pursuant to the provisions of Section 45 of these General Terms

and Conditions in order for such rate to become effective.

(h) To the extent Algonquin has (i) available capacity or (ii) capacity under expiring

or terminating service agreements where such capacity is not subject to a right of

first refusal or shipper does not exercise its right of first refusal, Algonquin

reserves the right, but shall not be obligated, to reserve such capacity for a

future expansion project. Algonquin may reserve capacity for a future expansion

project for which an open season has been held or will be held within twelve (12)

months of the date that Algonquin posts such capacity as being reserved. Any

capacity reserved pursuant to this Section 2.5(h) must first be posted as

available capacity on Algonquin's Web Site for at least five (5) Business Days.

Any minimum terms and conditions imposed in an open season for capacity to be

reserved must not materially differ so as to be more restrictive than the terms

and conditions imposed in the expansion project open season. In the event that a

subsequent expansion project open season imposes minimum terms and conditions that

are materially different from the minimum terms and conditions imposed for the

reserved capacity open season, Algonquin shall hold another open season for the

reserved capacity that uses the same minimum terms and conditions as were imposed

for the expansion project open season. Any capacity reserved under this Section

2.5(h) may be reserved for up to twelve (12) months prior to the time Algonquin

files for certificate approval for proposed construction of a related project and

thereafter until all expansion facilities are placed into service. Any capacity

reserved under this Section 2.5(h) shall be made available, pursuant to the

provisions of Section 2.6 of these General Terms and Conditions, for

transportation service on an interim basis up to, but not including, the in-

service date of the related expansion project(s). For such interim service,

Algonquin reserves the right to limit any Customer's renewal rights that might

otherwise apply to such service, including Customer's right of first refusal, if

applicable. Any capacity reserved for a future expansion project that does not go

forward for any reason shall be reposted as generally available within thirty (30)

days of the date the capacity becomes available.