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First Revised Sheet No. 302 First Revised Sheet No. 302 : Superseded

Superseding: Original Sheet No. 302

GENERAL TERMS AND CONDITIONS

(continued)

29. CAPACITY RELEASE (continued)

29.7 Bidding Process

(vi) whether Replacement Shipper is willing to acquire

capacity rights subject to recall by the Releasing

Shipper, and

(vii) Whether or not the Bidder is an affiliate of

the Releasing Shipper.

Any bid received by Transporter during the bidding period shall be

binding on the Bidder unless electronic notice of withdrawal is

received by Transporter prior to the close of the bidding period.

Bids cannot be withdrawn after the bid period ends. To be

considered valid, the bid must satisfy the minimum terms imposed

by the Releasing Customer.

29.8 Capacity Release Timeline

The Capacity Release timeline is applicable to all parties

involved in the Capacity Release process; however, it is only applicable if

1) all information provided by the parties to the transaction is valid and

the acquiring Shipper has been determined to be credit worthy before the

capacity release bid is tendered and 2) there are no special terms or

conditions of the release.

For short-term releases (less than 5 months):

- Offers should be tendered by 1:00 p.m. Central Time on the

day prior the nomination deadline applicable to the effec

tive date of the release.

- The bid period ends no later than 2:00 p.m. Central Time

on the day before nominations are due.

- The evaluation period begins at 2:00 p.m. CT during which

contingency is eliminated, determination of best bid is

made, and ties are broken.