Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/2004, Docket: RP04-432-000, Status: Effective

First Revised Sheet No. 190 First Revised Sheet No. 190 : Effective

Superseding: Original Sheet No. 190

GENERAL TERMS AND CONDITIONS

(Continued)

21. CAPACITY RELEASE (Continued)

(c) Replacement Shipper is responsible for payment of the

applicable Reservation Charge, and any surcharges

thereon, in the amount of its winning bid.

Replacement Shipper is also responsible for all other

billings, e.g., usage rate and applicable usage

surcharges. In the event of payment default, subject

to Section 8 herein, Transporter may elect to

terminate that Replacement Shipper's Capacity Release

Service Agreement which shall terminate all service

thereunder utilized by the Replacement Shipper.

(d) Once Replacement Shipper or PRS is notified of a

winning bid, such Replacement Shipper or PRS shall

have all the rights and obligations specified under

the Releasing Shipper's Rate Schedule, the Releasing

Shipper's Service Agreement and the General Terms and

Conditions of this Tariff including the right to

release firm capacity pursuant to this Section unless

the conditions prescribed by the Offer require

otherwise. Transporter should allow re-releases on

the same terms and basis as the primary release

(except as prohibited by regulations).

(e) Replacement Shipper shall have no Right of First

Refusal with respect to the released capacity, unless

such release is permanent.

21.7 Rights and Obligations of Transporter

(a) Transporter shall determine the best bid based upon

the best bid criteria established pursuant to Section

21.2(a)(11) or Section 21.4(h) herein. Transporter

shall have the right, but not the obligation, to

reject, in whole or in part, the terms of any Offer or

bid which is discriminatory or conflicts with any

order or regulation issued by the FERC, or