Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP03-407-002, Status: Effective

2nd Sub Original Sheet No. 556C 2nd Sub Original Sheet No. 556C : Effective

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

Updated recall notification information, including the

effective date of such new information, must be

provided to Transporter in writing or electronically

via the Internet as specified by Transporter.

Transporter has no obligation to provide notification

until replacement Shipper provides an Internet e-mail

address for that purpose. Transporter's recall

notification will indicate if penalties will apply for

the Day for which quantities are reduced due to a

capacity recall.

(iv) In the event of an intraday capacity release recall,

Transporter will determine the allocation of capacity

between the releasing Shipper and the replacement

Shipper(s) based upon the Elapsed Prorata Capacity and

the releasing and replacement Shippers' applicable

Contract Limitations shall be adjusted accordingly.

Transporter shall not be obligated to deliver in

excess of the total daily contract quantity of the

release as a result of recall. The amount of capacity

allocated to the replacement Shipper(s) will equal the

original released capacity less the recalled capacity

that is adjusted based upon the Elapsed Prorata

Capacity.

(v) No later than 8:00 a.m. on the Day nominations are due

for the first Day of the reput period, the releasing

Shipper must communicate its intent to reput capacity

to Transporter and to replacement Shipper. The

releasing Shipper shall be responsible for providing

electronic notice to Transporter and the replacement

Shipper(s) of its exercise of reput rights.

(vi) The exercise of recall and reput rights shall be

subject to compliance with Transporter's normal

nomination and scheduling deadlines and procedures.

The releasing Shipper shall exercise and administer

such recall and reput rights and Transporter may rely

on the releasing Shipper's