B-R Pipeline Company

Original Volume No. 1

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Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 108 Original Sheet No. 108 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

20. CAPACITY RELEASE (Continued)

(c) Transporter may extend the open season periods for those

releases wherein the Releasing Shipper has requested volumetric

rate bids, or where the Releasing Shipper has requested a

method of evaluating bids not specified in this Tariff, or

where the terms and conditions are too complex to handle

through Transporter's automated posting and bidding procedures.

Such extended period of time shall end at least two (2)

business days prior to the effective date of the release.

20.4 Permanent Releases of Capacity.

(a) Bidding Procedures and Exit Fee.

(i) To the extent that any Shipper desires to release

all or any part of its firm contract rights, including

the Right-of-First-Refusal specified in Section 22.5, on a

permanent basis as included in any of Transporter's

Rate Schedule FT-1, the bidding procedures specified

in Section 20.2, above, will apply. The procedures for

establishment of credit must be complied with before

Transporter effectuates any permanent releases of

capacity under this Section 20.4.

(ii) Any permanent releases under this Section 20.4(a)

shall require Releasing Shipper to pay an exit fee, but

only to the extent necessary to fully compensate

Transporter if the accepted bid price and/or contract

term of the replacement Service Agreement would require

Transporter to forego future revenues. The exit fee will

not apply if the accepted bid price the Replacement

Shipper(s) or Prearranged Replacement Shipper(s) is to

pay is Transporter's posted Maximum Currently Effective

Tariff rate for the released capacity, and if the

contract term in the replacement Service Agreement(s) is

at least as long as the contract term of the contract

being permanently released hereunder.