Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 08/19/2005, Docket: RP05-447-000, Status: Effective

Fourth Revised Sheet No. 305 Fourth Revised Sheet No. 305 : Effective

Superseding: Third Revised Sheet No. 305

GENERAL TERMS AND CONDITIONS

(Continued)

29. CAPACITY RELEASE (continued)

29.9 Rewarding of Released Capacity

(iii) If more than one valid bid is received and none offers the maximum applicable rate for the maximum

term, Transporter will award the capacity to the bid offering the maximum revenue over the minimum term

specified by the Releasing Customer. Such maximum revenue shall be computed from the monthly demand

charge or reservation revenues to be received over the minimum term of the release contract, except that

under a Negotiated Rate agreement with a minimum quantity, the maximum revenue evaluation shall also

include the fixed cost component of the usage revenue at the minimum quantity.

(iv) If two or more equal bids are received, Transporter will award the capacity on the basis of the

tie-breaker criteria provided by the Releasing Customer. If no tiebreaker criteria are provided by the

Releasing Customer then capacity will be awarded on the basis of a lottery to be held within two (2)

business days of the close of the bidding period. The lottery will be conducted by Transporter on a

nondiscriminatory basis and on a one (1) business day's notice to the affected parties who will have the

right to attend. Capacity shall be awarded on the basis of a draw, on an all or nothing basis.

For less than maximum rate transactions only, converting daily rate to monthly rate is accomplished

by multiplying the daily rate times number of days in rate period, dividing the result by number of months

in rate period and taking the remainder out to 5 decimal places and rounding up or down to the

Transporter's specified decimal place. Converting a monthly rate to a daily rate is accomplished by

multiplying the monthly rate by number of months in rate period, dividing the result by number of days in

rate period and taking the remainder out to 5 decimal places and rounding up or down to the transporter's

specified decimal place.

Transporter should not award capacity release offers to the Shipper until and unless the Shipper

meets Transporter's creditworthiness requirements applicable to all services that it receives from

Transporter, including the service represented by the capacity release.