Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

Third Revised Sheet No. 259 Third Revised Sheet No. 259

Superseding: Second Revised Sheet No. 259

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

Star's Approved Bidder List, as defined in Section 8.5, and

have sufficient creditworthiness approved by Southern Star

to cover its bid before its bid may be submitted under

Section 11 of these General Terms and Conditions. The

Replacement or Pre-arranged Shipper must satisfy all other

pipeline tariff provisions governing Shipper eligibility

before it may contract with Southern Star for the released

capacity. Once the Replacement or Pre-arranged Shipper,

with the approval of Releasing Shippers, executes a Service

Agreement with Southern Star, the Replacement or Pre-

arranged Shipper becomes a Shipper like any other Shipper

and is subject to applicable provisions of Southern Star's

FERC Gas Tariff, including but not limited to Southern

Star's billing and payment and operational provisions. In

addition, the Replacement or Pre-arranged Shipper as a

Shipper may also release its capacity pursuant to this

Section. Firm capacity reassignments will require the

tender of paper service agreements only when the release is

for the entire remaining term of all or a portion of the

Releasing Shipper's capacity on Southern Star's system.

(d) Any Replacement or Pre-Arranged Shipper who satisfies all

tariff provisions governing eligibility and who desires the

capacity may submit a bid for the capacity under the

conditions posted in conjunction with a notice of release.

Any such bid shall be considered a service request pursuant

to Section 8.1 of these General Terms Conditions; provided,

however, that no earnest money payment will be required.

The Shipper desiring capacity must submit a bid to Southern

Star via Southern Star's CSI prior to the expiration of the

bidding period. Bids for capacity may not exceed Southern

Star's posted maximum rate including ACA or other

surcharges; provided, however, that beginning July 30, 2008,

the maximum rate ceiling specified in the preceding sentence

shall not apply to capacity release transactions of one year

or less. Southern Star will post a volumetric equivalent of

its maximum reservation charge on the applicable Tariff

Sheet 10, 10A, or 11. Any marketing fee to be earned by

Southern Star may not be included in a maximum rate bid by a

Replacement Shipper. Bids for capacity will be posted on

Southern Star's CSI with the bidder's identity deleted.