Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 08/01/2004, Docket: RP04-381-000, Status: Effective

First Revised Sheet No. 558 First Revised Sheet No. 558 : Effective

Superseding: Original Sheet No. 558

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

be charged and shall pay, and Reservation Charge amounts

paid by replacement Shippers shall be credited against,

the total reservation or demand charges (plus all

surcharges and fixed costs applicable thereto) applicable

to such released quantity under Rate Schedule NNTS,

unless Transporter otherwise agrees. Upon implementation

of either type of release and assignment, the releasing

Shipper's Contract Delivery Demand shall be reduced by

the firm capacity quantity released for the term of the

release. Consistent with Shipper's obligations under

Rate Schedule NNTS, Shipper's retained Contract Delivery

Demand and corresponding Receipt Entitlements must

reflect the required supply entitlement ratio of flowing

supplies to storage supplies set forth in Section 2.3 of

such Rate Schedule.

(j) The offer to release by a Shipper under Rate Schedule FSS

must specify the injection/withdrawal rights offered,

which rights must be consistent with the Maximum Storage

Quantity offered for release and actually available on

the effective date of the assignment, and the exercise of

which rights, in conjunction with releasing Shipper's

exercise of its retained rights, will not violate any

maximum or minimum quantity requirements or limitations

applicable under the Rate Schedule or the respective

Service Agreements. Releasing Shipper shall be

responsible for ensuring, whether by the withdrawal or

transfer-in-place of part of its Working Gas Storage

Quantity or otherwise as required, that such storage

capacity, and the corresponding ability to

inject/withdraw Gas up to the Maximum Storage Quantity

released, in accordance with the terms and conditions of

the Rate Schedule and within the time remaining in the

Injection/Withdrawal Period, as applicable, shall be

available upon the commencement of the release. A

replacement