Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-361-000, Status: Effective

Second Revised Sheet No. 235 Second Revised Sheet No. 235 : Effective

Superseding: Superseding First Revised Sheet No. 235

GENERAL TERMS AND CONDITIONS

(Continued)

14. CAPACITY REALLOCATION

mechanism pursuant to which a Releasing Customer can

release all or part of its firm capacity back to

Transporter for assignment to a Potential Customer or

a Prearranged Customer that submits the "best bid"

for the capacity of Releasing Customer and enters

into a service agreement with Transporter. A

Releasing Customer may release its firm capacity on

Transporter only under this Section 14.1.

release capacity which is held pursuant to

either subpart B or subpart G of Part 284

of 18 C.F.R.

firm rate schedule under this FERC Gas

Tariff is permitted to release its firm

capacity, in whole or in part, on a

permanent or temporary basis, and on a firm

or recallable basis; provided, however,

such capacity may only be released to the

extent and at such time as Transporter

enters into a service agreement with a

Replacement Customer.

Transporter

its Customer Electronic System for any

Releasing Customer that desires to release

any or all of its firm capacity

(hereinafter referred to as the "Release

Notice"). Such Release Notice shall

include the following information: