Chandeleur Pipe Line Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 35 Second Revised Sheet No. 35 : Effective

Superseding: First Revised Sheet No. 35

GENERAL TERMS

AND CONDITIONS

7.0 FIRM CAPACITY RELEASE UNDER ORDER NO. 636 (Cont'd)

7.2 Permanent Release of Capacity

(a) The permanent release of capacity is where a

releasing Shipper forgoes its contractual

rights to any or all of its capacity with

Chandeleur for the remaining term of its

Service Agreement with Chandeleur.

(b) The following procedures will be followed to

allow for the nondiscriminatory permanent

reassignment of capacity:

(1) A firm Shipper that wants to release any

or all of its firm capacity must notify

Chandeleur of its terms and conditions

including:

- price up to the maximum monthly

Reservation Charge or percent of

maximum monthly Reservation Charge

including any applicable rate

surcharges,

- contract number and term,

- amount of capacity,

- methods of evaluating bids and

breaking tied bids, and

- prepayments of Reservation Charges,

under which the Shipper will release

its capacity.

(2) The firm Shipper must also notify

Chandeleur of any pre-arranged

replacement Shipper(s) it has designated

to obtain the released capacity under

the terms and conditions specified by

the firm Shipper.

(3) Subject to Section 7.6 of the General

Terms and Conditions, Chandeleur, upon

receipt unless releasing Shipper states

otherwise, will provide notice on its

internet website any offer to release

capacity or to purchase capacity and any

terms and conditions under which such

release or purchase shall be made.