Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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

Third Revised Sheet No. 529 Third Revised Sheet No. 529

Superseding: Second Revised Sheet No. 529

GENERAL TERMS AND CONDITIONS

(continued)

9. PREGRANTED ABANDONMENT AND RIGHT OF FIRST REFUSAL (continued)

capacity posted pursuant to Section 9.2(b) must submit bids for such capacity as

described in the applicable posting no later than the last Day of the fourth Month

following the Month in which Algonquin posts an applicable notice pursuant to

Section 9.2(b); commencing January 1, 2006, such bids must be submitted online via

the LINK® System. To be a valid bid, a bid must comply with the bid requirements

set forth in Section 9.2(d). At the close of such bidding period, Algonquin shall

select among the valid bids the "best bid(s)", as determined pursuant to Section

9.2(e), and shall relay the relevant terms of such "best bid(s)" to the Customer

whose capacity has been posted pursuant to Section 9.2(b) within 3 Business Days of

the close of such bidding period. If Customer elects to match, as determined by

Section 9.2(f), the "best bid(s)", the Customer shall be entitled to retain its

capacity and continue to receive firm service under a new service agreement which

reflects the matching of the relevant contractual provisions of the "best bid(s)".

If Customer does not match the "best bid(s)", then Customer's right of first refusal

for the capacity shall terminate and Algonquin shall have all necessary abandonment

authorization under the Natural Gas Act. In the event there is no "best bid(s)" for

Customer to match, Section 9.2(g) shall determine whether Customer shall be entitled

to retain its capacity and continue to receive service.

(d) To be a valid bid, the Replacement Customer must provide all information and data

required by Sections 2.1 and 3 of the General Terms and Conditions. Algonquin may

reject all bids which would require Algonquin to discount below a rate and for

discount period agreeable to Algonquin. In the event Algonquin agrees to accept

such a discounted rate that is less than the applicable maximum tariff rate,

Customer must submit a discount request online via the LINK® System and Algonquin

must approve such request pursuant to the provisions of Section 45 of these General

Terms and Conditions in order for such rate to become effective.

(e) Algonquin shall review all bids from Replacement Customers received pursuant to

Section 9.2(c), which have not been rejected by Algonquin, to determine which bid is

the "best bid(s)". For purposes of this Section 9, the "best bid(s)" shall be the

bids which yields to Algonquin the highest net present value. Net present value

shall be calculated on the basis of the present value of the Reservation Charge per

unit to Algonquin except that under a Negotiated Rate agreement with a minimum

quantity, the net present value evaluation shall also include the fixed cost

component of the usage revenue at the minimum quantity. In making the determination

of net present value Algonquin shall apply the rate, as of the date of the review,

stated in accordance with Section 154.501(d) of the Commission's regulations, to all

bids.