Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective

Original Sheet No. 124 Original Sheet No. 124

GENERAL TERMS AND CONDITIONS

(Continued)

26. CAPACITY RELEASE (continued)

26.9 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.