East Tennessee Natural Gas, LLC

Third Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP08-487-002, Status: Effective

Original Sheet No. 315B.03b Original Sheet No. 315B.03b

GENERAL TERMS AND CONDITIONS (Continued)

5.8 Allocation of Firm Capacity (continued)

(a) Existing Capacity (continued)

the notice of award, and Transporter shall have

the right to reject and/or terminate any award

for failure of a bidder to do so. If a bidder

fails to post such collateral, Transporter shall

have the right to require that such bidder post

collateral contemporaneously with any future

bid(s) or provide other credit assurance of a

type reasonably acceptable to Transporter given

the financial obligations associated with the

particular award.

(viii)Transporter will provide interest on the

collateral in accordance with Section 6.2.

(9) In the event Transporter receives two (2) or more bids

that qualify as the "best bid" (i.e., two (2) or more

bids that produce an equivalent net present value),

capacity subject to the open season will be allocated

between or among such requests pro rata based on the

MDTQ requested; provided, however, if a bidder offered

capacity on a pro rata basis pursuant to this Section

5.8(a)(9) fails to execute a service agreement or an

amendment to an existing service agreement, as

applicable, in accordance with Section 5.10(b) below

within (i) five (5) Business Days for service with a

term of less than one (1) Year or (ii) fifteen (15)

days of the tender of a service agreement or an

amendment to an existing service agreement, as

applicable, by Transporter for service with a term of

one (1) Year or longer, Transporter shall deem such

bidder's request to be null and void and shall

reallocate the available capacity pro rata to such

remaining best bids, based on the MDTQ requested by

those bidders, in accordance with this Section

5.8(a)(9).

(10) Within twenty-four (24) hours after an award of

capacity under this Section 5.8, Transporter shall

post on the LINK® System the best bid(s), showing the

net present value for such best bid(s). In the event

the winning bidder is not the Shipper or potential

Shipper that submitted the request for service which

caused the open season to be held, such winning bidder

must submit a request for service pursuant to Section

5.2(a) of these General Terms and Conditions. In the

event the best bid is a discounted rate that is less

than the applicable maximum tariff rate and

Transporter accepts a bid at less than the maximum

rate as the winning bid, then the bidder must submit a

discount request form online via the LINK® System and

Transporter must approve such discount request

pursuant to the provisions of Section 41 of these

General Terms and Conditions in order for such rate to

become effective.