Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 06/26/2002, Docket: RS93- 1-001, Status: Effective

Original Sheet No. 309 Original Sheet No. 309 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

29. CAPACITY RELEASE (continued)

29.13 Obligations of Releasing Customer. (continued)

(iv) Transporter will continue to bill the Releasing

Customer for all reservation and related charges

on a monthly basis, and the Releasing Customer

shall make payment in accordance with Article 6 of

this tariff. Simultaneous with the billings to

Replacement Customer, pursuant to Section 14(ii)

below, Transporter shall credit to Releasing Cus-

tomer, all reservation and related charges billed

to Replacement Customer.

29.14 Obligations of Replacement Customer: By executing a

service agreement for released capacity, the Replacement

Customer agrees that it will comply with the terms and

conditions of Transporter's FERC Gas Tariff.

(i) The Replacement Customer agrees to indemnify

Transporter against and to release and hold Trans-

porter harmless against any loss, liability, or

expense (including, without limitation, court

costs and attorneys fees) incurred or suffered by

Transporter or the Replacement Customer arising

out of or in connection with the provisions of

this Article except for losses, damages, or ex-

penses caused solely by Transporter's own negli-

gence or willful misconduct.

(ii) The Replacement Customer shall be liable for the

portion of the demand or reservation charges spec-

ified in its service agreement, along with all

commodity related charges applicable to its ser-

vice utilization, and all applicable penalties.

Transporter will bill the Replacement Customer on

a monthly basis and the Replacement Customer shall

make payment in accordance with Article 6 of this

tariff.