Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 01/31/2003, Docket: RP97-153-000, Status: Effective

First Revised Sheet No. 299 First Revised Sheet No. 299 : Superseded

Superseding: Original Sheet No. 299

GENERAL TERMS AND CONDITIONS

(continued)

29. CAPACITY RELEASE (continued)

29.4 Notice by Releasing Customer

(viii) Whether contingent bids will be accepted for evaluation

and, if so, for what time period each contingent bidder

will be allowed to meet or eliminate the contingency; and,

if not met or eliminated, all details concerning the

evaluation of other bids, including when the next highest

bidder will be obligated to acquire the capacity.

(ix) Whether the Releasing Customer is willing to consider

releasing capacity at a minimum rate, including all sur

charges, or at a rate lower than the maximum reservation

rate for the applicable service, or if the Releasing Cus

tomer is willing to consider bids on a volumetric basis,

the minimum reservation charge stated on a volumetric

basis.

(x) Whether bids should be submitted in dollars and cents or

percentages of maximum tariff rate.

(xi) Whether the Releasing Customer wants Transporter to market

its released capacity;

(xii) The criteria which Transporter should apply in determining

the "best bid" and any tie-breaker to be applied in the

event of equal bids, may be one of the following three

standard evaluation methods; 1) highest rate, 2) net

revenue and 3) present value or such other methodology as

defined by the Releasing Shipper. Any said alternative

criteria must be objectively stated and non-

discriminatory. However, any method other than the three

standard methods listed above may be evaluated outside the

Capacity Release Timeline outlined in Section 29.7;

(xiii) The length of the bidding period desired.

Releasing Shipper shall not be allowed to specify an extension

of the original Bid Period or the Prearrange deal matching

period without posting a new release.