Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

Effective Date: 01/01/2009, Docket: RP09-72-000, Status: Effective

Second Revised Sheet No. 541 Second Revised Sheet No. 541

Superseding: First Revised Sheet No. 541

GENERAL TERMS AND CONDITIONS

(continued)

14. CAPACITY RELEASE (continued)

14.5 Effect of Notices and Bids.

(a) The posting of Releasing Customer's Notice shall constitute an invitation to

entertain bids on the Releasing Customer's firm transportation contract rights

and obligations pursuant to its terms and the terms herein, but shall not

constitute an offer by Algonquin. A bid shall constitute an offer by the

bidding party to accept from Algonquin such rights and obligations, and shall

remain open until Algonquin accepts the bid or a competing bid, unless

retracted by the bidder prior to the close of the Bid Period by any means that

meets the requirements of the tariff and the Releasing Customer's terms and

conditions. Bids will be legally binding on the Replacement Customer or

Prearranged Customer until written or electronic notice of withdrawal is

received by Algonquin; provided, however, bids cannot be withdrawn after the

bid period ends. Bids may be revised during the Bid Period, and shall be

deemed received as of the time of the last revision; provided, however, that no

bidder shall maintain more than one bid for the same capacity. No bid may be

resubmitted or revised in order to submit a lower bid.

(b) Releasing Customer's Notice shall constitute authorization for Algonquin to

accept bids by posting notice of such acceptance on the LINK® System, and where

applicable, by electronic data interchange. Releasing Customer may withdraw

Releasing Customer's Notice at any time prior to the close of the Bid Period

associated with Releasing Customer's Notice, where unanticipated circumstances

justify the withdrawal and no bids meeting the minimum conditions have been

made. The Releasing Customer's notice will be legally binding on the Releasing

Customer until the written or electronic notice of withdrawal is received by

Algonquin. The reason for withdrawal must be submitted to Algonquin for

posting.

identified, pursuant to Section 14.4(a)(10) of these General Terms and

Conditions, in the Releasing Customer's Notice.

(1) If there is only one valid bid, Algonquin shall award the capacity to the

bidder that submitted such bid, subject to any Prearranged Customer's

exercise of its matching rights.

(2) If there is more than one valid bid, then, subject to any Prearranged

Customer's exercise of its matching rights, Algonquin shall award the

capacity to the bidder whose bid yields the highest value based on the

bid evaluation method specified in the Releasing Customer's Notice,

taking into account the price, volume and term of the bid, as applicable.

If more than one bid yields the same value under this subsection (2),

Algonquin shall award the capacity according to the method specified in

the Releasing Customer's Notice ("Tie Break Method") as a means for

awarding the released capacity among multiple equal bids.