Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 08/06/2006, Docket: RP06-428-000, Status: Effective

Original Sheet No. 220 Original Sheet No. 220 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

35. RESERVATION OF CAPACITY FOR EXPANSION/EXTENSION PROJECTS

Transporter may elect to reserve capacity required for a future

expansion/extension project out of unsubscribed capacity or

capacity under expiring Service Agreements where such Service

Agreements do not have a right of first refusal or Shipper does not

exercise its right of first refusal. Transporter may only reserve

capacity for a future expansion/extension project for which an open

season has been or will be held within one year of the date that

Transporter posts such capacity as being reserved. Prior to

reserving capacity for an expansion/extension project, Transporter

shall first post for bid all of its available capacity on its Web

Site as set forth in Section 20 of the General Terms and Conditions

for a minimum of five (5) business days and award such capacity in

accordance with the terms of the posting.

Capacity may be reserved for expansion/extension projects only

during a 12-month period prior to Transporter filing for

certificate approval for construction or acquisition of proposed

expansion/extension facilities, and following the certificate

filing, only until all expansion/extension facilities related to

the certificate filing are placed into service.

If Transporter reserves capacity for an expansion/extension

project, it will notify Shippers of its intent as part of

Transporter's posting of capacity on its Web Site. Transporter's

posting for reserved capacity for future expansion/extension

projects shall include the following information: (a) a

description of the project for which the capacity will be reserved;

(b) the total quantity of capacity to be reserved; (c) the location

of the proposed reserved capacity on the pipeline system;

(d) whether, and if so when, Transporter anticipates that an open

season for the capacity will be held or the reserved capacity will

otherwise be posted for bids; (e) the projected in-service date of

new facilities; and (f) on an ongoing basis, how much of the

reserved capacity has been sold on a limited-term basis that would

otherwise be eligible for a right of first refusal. Transporter

will make reasonable efforts to update the reservation posting up

to the in-service date of the project to reflect any material

changes in the scope of the project.