Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-261-000, Status: Effective

Second Revised Sheet No. 557 Second Revised Sheet No. 557

Superseding: First Revised Sheet No. 557

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

notice and instructions. Releasing Shipper shall indemnify

and hold Transporter harmless from and against all demands,

losses, causes of action, expenses and/or damages resulting

from or relating to releasing Shipper's exercise of its

recall and reput rights and Transporter's compliance

therewith, including claims by the affected replacement

Shipper(s).

(h) Following completion of a Service Agreement with a

replacement Shipper in accordance with the procedures

provided in this section, the releasing Shipper's rights and

Transporter's obligations under the releasing Shipper's

Service Agreement shall be modified and subject to the

capacity rights released and assigned to the replacement

Shipper for the term of such release. Effecting a release

pursuant to the provisions of this section shall constitute

releasing Shipper's consent and agreement to such amendment

or modification of its existing Service Agreement.

(i) A Shipper under Rate Schedule NNTS may release and assign

capacity hereunder, including its no-notice rights; provided

that (i) service under such release shall be available only

at the Delivery Point(s) designated in the releasing

Shipper's Service Agreement and at which the releasing

Shipper releases and assigns firm capacity rights; and (ii)

the replacement Shipper must be able to demonstrate its

ability to comply with the supply and other obligations

contained in Rate Schedule NNTS. Releasing Shipper shall be

responsible for ensuring that to the extent Transporter

directs, adequate Working Gas Quantity is transferred to the

replacement Shipper effective with the beginning date of the

release, and that to the extent Transporter directs,

adequate Working Gas Quantity is transferred from the

replacement Shipper to the releasing Shipper effective with

the termination date of a temporary release, using the in-

field transfer procedures specified in Rate Schedule FSS.