Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-513-001, Status: Effective

Substitute First Revised Sheet No. 545 Substitute First Revised Sheet No. 545 : Effective

Superseding: Original Sheet No. 545

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

three (3) Business Days (unless releasing Shipper designates

a longer period) following receipt of a notice of offer

which satisfies the requirements of this Section 19.

Transporter shall evaluate the bids in accordance with the

provisions of Section 19 and determine the best bid by 10:00

a.m. on the third Business Day following the close of the

bid period. Transporter shall notify releasing Shipper, the

best bidder, and any pre-arranged designated replacement

Shipper of such determination by the end of such Business

Day. If there is a pre-arranged designated replacement

Shipper, it may exercise its right to match such best bid by

providing electronic notice of such exercise to Transporter

and releasing Shipper by the close of business on the third

Day following selection of the best bid. Following

implementation of the release, Transporter shall post notice

on its Internet Web Site of the winning bidder and affiliate

and, as appropriate, agent information for the winning

bidder. Except as provided herein, the other terms of this

Section shall apply to non-standard releases.

19.4 Bidding and Selection of Replacement Shipper.

(a) All bids must be valid, complete, and contain the applicable

information required in this section and any other

information required for a valid request for service listed

commencing on Sheet No. 697, including, but not limited to,

whether there is an affiliate relationship between the

releasing Shipper and the bidder. If the bid is for a

permanent release, the bidder must provide the name of any

agent or asset manager managing such bidder's transportation

service, and if awarded the release, the bidder shall have a

continuing obligation to notify Transporter of any change in

status relating to its agent or asset manager during the

term of such release. All valid and complete bids are

binding. If releasing Shipper desires to solicit bids for

releases of thirty-one (31) Days or less, it may direct

Transporter to post notice of the availability of such

capacity and, in lieu of permitting bids during the

otherwise applicable posting