Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 02/01/2003, Docket: RP03-220-000, Status: Effective

Original Sheet No. 30A Original Sheet No. 30A : Effective

GENERAL TERMS

AND CONDITIONS

7.0 FIRM CAPACITY RELEASE UNDER ORDER NO. 636

7.1 General Requirements

(a) Firm Shippers are permitted to release their

capacity, in whole or in part, on a permanent

or temporary basis, without restriction on

the terms or conditions of the release. A

firm Shipper may pre-arrange for a

replacement Shipper to obtain its released

capacity from the pipeline. A replacement

Shipper is any Shipper that obtains released

capacity. In the event a firm Shipper

permanently releases capacity, Chandeleur has

pregranted authority to cease firm

transportation to the releasing Shipper

pursuant to Section 284.221(d) of the

Commission's regulations.

(b) Chandeleur will enter into contracts with all

replacement Shippers. If the release of

capacity is permanent, the replacement

Shipper will be required to execute a FT

Transportation Service Agreement, a form of

which is set forth herein. If the release of

capacity is temporary, the replacement

Shipper will be required to execute a

Temporary Term Transportation Service

Agreement, a form of which is also set forth

herein.

Regardless of the timeline for Chandeleur to

tender Transportation Agreements to

replacement Shippers as set forth in Section

7.1 (d), replacement Shippers can nominate at

the earliest available nomination opportunity

after receiving notification of award of

released capacity by Chandeleur per timeline

of Section 7.1 (d).