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First Revised Sheet No. 304 First Revised Sheet No. 304 : Superseded

Superseding: Original Sheet No. 304

GENERAL TERMS AND CONDITIONS

(continued)

29. CAPACITY RELEASE (continued)

29.8 Capacity Release Timeline

- Transporter shall post the winning bids for bidded release

by 5:00 p.m. CT on the day prior to the nomination

deadline.

- Transporter shall tender a contract with a contract number

by 10:00 a.m. CT on the day of the nominations deadline

applicable to the effective date of the release.

29.9 Rewarding of Released Capacity

Release capacity shall be made available on a non-discriminatory

basis in accordance with the timeline described above. wherein

Transporter will evaluate all bids received, and select the

"Best bid" which will receive the released capacity. If there

are awards of capacity for which there have been multiple bids

meeting minimum conditions, the best bid shall be awarded first,

until all offered capacity is awarded. Initially, Transporter

will eliminate from consideration those bids which do not meet

the minimum conditions established by the Releasing Customer and

those bids

which have not complied with Transporter's own credit-

worthiness criteria. If the Releasing Customer has provided

alternative criteria for determining the "best bid,"

Transporter will apply those criteria to determine which bid

receives the capacity. If no evaluation criteria have been

provided by the Releasing Customer, Transporter will award the

released capacity based on the application of the following

criteria:

(i) If there is only one valid bid, Transporter will award

the

released capacity to that Bidder,

(ii) If more than one valid bid is received, Transporter will

award the released capacity to the Bidder offering the

maximum applicable rate for the maximum term specified

by the Releasing Customer.