Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-457-000, Status: Effective

First Revised Sheet No. 552 First Revised Sheet No. 552 : Effective

Superseding: Original Sheet No. 552

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

applicable under the relevant Rate Schedule attributable to

its usage of the released capacity.

(b) Transporter shall continue to invoice the releasing Shipper

all applicable charges under its existing Service Agreement,

including any additional or higher reservation or demand

charges (plus all surcharges and fixed costs applicable

thereto) resulting from replacement Shipper's utilization of

the released capacity in a manner inconsistent with

Transporter's agreement with the releasing Shipper, but

excluding commodity or usage charges (plus surcharges, fuel

retentions, penalties, etc.) invoiced to the replacement

Shipper and attributable to its usage of the released

capacity. Invoices sent to the releasing Shipper shall

reflect a credit equal to any reservation or demand charges

(plus all surcharges and fixed costs applicable thereto)

being invoiced to the replacement Shipper for the released

capacity rights, or as otherwise agreed.

(c) If the replacement Shipper fails to pay when due all or part

of the amounts credited to the releasing Shipper,

Transporter shall pursue payment from the replacement

Shipper by notifying such Shipper by registered letter,

return receipt requested, that it has five Days from receipt

of such letter to pay the amount due including any

applicable interest. If the replacement Shipper fails to

pay such amount by the end of the fifth Day, Transporter

shall reverse the credit and invoice the releasing Shipper

for such past due amounts, plus applicable interest.

(d) Unless the releasing Shipper specifies otherwise in the

applicable offer to release or pre-arranged release,

Transporter will provide the releasing Shipper with Internet

e-mail notification, reasonably proximate in time with any

of the following formal notices given by Transporter to the

releasing Shipper's replacement Shipper(s), of the

occurrence of any of the following:

(i) Notice regarding past due, deficiency, or default

status pursuant to this Tariff;

(ii) Notice regarding suspension of service;

(iii) Notice regarding contract termination due to default

or credit-related issues; and