Carolina Gas Transmission Corporation

Original Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-296-000, Status: Effective

First Revised Sheet No. 165 First Revised Sheet No. 165

Superseding: Original Sheet No. 165

17. CAPACITY RELEASE

This Section 17 sets forth a firm capacity release mechanism subject to

Subpart A of Part 284 of the Commission’s regulations by which firm

Shippers voluntarily can release all or part of their capacity to

Replacement Shippers.

17.1 Eligible Capacity Release Transactions.

(a) A Shipper under any firm Service Agreement is permitted to

release its firm capacity, except as specifically

restricted by the applicable Service Agreement.

(b) Replacement Shipper subsequently may release its acquired

capacity as a secondary release, thereby also becoming a

Releasing Shipper.

for all or any portion of the Releasing Shipper’s Primary

Path capacity, including any portion or segment of the

Releasing Shipper’s Primary Path, and any Receipt or

Delivery Point(s) within the Primary Path, subject to the

priority of firm Shippers using such points as primary

points. Shippers shall not release capacity on any segment

in excess of its Line Path Quantity.

17.2 Terms Applicable to All Releases. All capacity release

transactions are subject to the following terms.

(a) The Replacement Shipper acquiring released capacity may use

Secondary Receipt Points and Secondary Delivery Points only

as allowed under the applicable Service Agreement. Unless

the release is permanent, Pipeline and Replacement Shipper

may not agree to change Primary Receipt Points or Primary

Delivery Points without the written consent of Releasing

Shipper.

(b) For releases of transportation capacity, the rate charged

the Replacement Shipper shall not exceed the applicable

maximum rate. For releases that become effective on or

after July 30, 2008, no rate limitation applies to the

release of capacity for a period of one year or less if the

release is to take effect on or before one year from the

date on which the Pipeline is notified of the release.