Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 07/16/2009, Docket: RP09-768-000, Status: Effective

Fifth Revised Sheet No. 147 Fifth Revised Sheet No. 147

Superseding: 2nd Sub Fourth Revised Sheet No. 147

GENERAL TERMS AND CONDITIONS (Continued)

(e) Binding Nature of Bids; Liquidated Damages. All bids are binding; provided, however, that a

bidder may decline to accept a pro rata allocation of capacity resulting in an award of less than the full

capacity requested if such Shipper notifies Transporter of that decision through Transporter's EBB within one

hour of Transporter's notice to that Shipper of the pro rata allocation. Otherwise, if a successful bidder

fails to execute a Service Agreement within 15 days after such Service Agreement is tendered by Transporter,

(or such later date established by Transporter through notice to Shipper). Transporter will then award the

capacity to the next acceptable bidder on the basis of the highest net present value, as described in this

Section. If Transporter finds no other bid acceptable, the capacity shall be posted again and thereby made

available for a new round of bids.

(f) Adjustment to Bid Rate. When the rate bid by a Bidder is at the Maximum Base Reservation

Charge, that bid rate shall be subject to adjustment in accordance with the procedures of this Tariff and of

the Commission, unless otherwise clearly stated in the Service Agreement. When the rate bid by a Bidder is

lower than the Maximum Base Reservation Charge, that bid rate shall be subject to adjustment in accordance with

the procedures of this Tariff and of the Commission by an amount proportionate to the increase or decrease in

the Maximum Base Reservation Charge, unless otherwise clearly stated in the Service Agreement.

(g) Bona Fide Offers. All bids submitted for capacity pursuant to this Section must be bona fide

offers, and must be submitted electronically through Transporter's EBB or as otherwise set forth in this

Tariff. All Service Agreements entered into as a result of such bids must reflect an arms length transaction

between the bidder and Transporter.

(h) Relation to Section 11 of the General Terms and Conditions. With regard to the newly

available capacity subject to bidding under the terms of this Section, acceptable bids under this Section that

satisfy Transporter's stated minimum terms and conditions shall have priority over any potential claims for

that capacity under the flexible receipt and delivery point authority described at Section 11 (Flexible Primary

and Secondary Receipt and Delivery Points) of the General Terms and Conditions.

(i) Reserved Capacity. Transporter may elect to reserve for future expansion projects any

unsubscribed capacity or capacity under expiring or terminating service agreements where such agreements do

not have a right of first refusal or shipper does not exercise its right of first refusal ("Available

Reservation Capacity"). If Transporter elects to reserve Available Reservation Capacity, it will notify

shippers of its intent as part of Transporter's posting of the Available Reservation Capacity under this

Section 4.2(i) (Reserved Capacity) of the General Terms and Conditions. Available Reservation Capacity may be

reserved for up to one year prior to the Transporter filing for Natural Gas Act Section 7(c) certificate

approval or prior notice authorization pursuant to Transporter's blanket construction certificate for

construction of the proposed expansion and thereafter until such expansion is placed into service.

Transporter may only reserve Available Reservation Capacity for a future expansion project for which an open

season has been held or will be held within one (1) year of the date that Transporter posts such Available

Reservation Capacity as being reserved. Any Available Reservation Capacity reserved under this Section 4.2(i)

shall be made available for transportation service pursuant to Transporter's General Terms and Conditions on a

limited-term basis up to the in-service date of the expansion project(s). Transporter reserves the right to

limit any extension rights provided in the service agreements and pursuant to Section 4.1 of the General Terms

and Conditions governing rights of first refusal commensurate with the proposed in-service date of the

expansion project.