Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-415-000, Status: Effective

First Revised Sheet No. 180 First Revised Sheet No. 180 : Effective

Superseding: Original Sheet No. 180

GENERAL TERMS AND CONDITIONS

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(d) A capacity release shall become effective upon

the awarding of capacity consistent with this Section 15.

Nominations for gas service utilizing the released capacity shall

be accepted at the next available nomination opportunity which

occurs on or after the time the release becomes effective

hereunder, consistent with 18 C.F.R. Section 284.12(c)(1)(ii);

provided that nominations cannot be effectuated prior to the

beginning time specified in the release. Horizon shall issue a

contract to the winning Qualified Bidder within one (1) hour after

the capacity has been awarded. So long as the winning bidder has

pre-approved credit, that bidder can submit a nomination

consistent with the above regardless of whether a contract with

Horizon covering the capacity awarded has been issued or executed;

provided, however, that a contract must be executed under the

provisions of the relevant rate schedule regarding timely

execution of a contract tendered by Horizon in order for a Shipper

to have continued service beyond the maximum time specified for

timely contract execution. If the original Shipper has already

submitted a nomination on a Day under the Agreement being

released, and if the Replacement Agreement covering the released

capacity is effective that same Day, the original Shipper may

incur overrun charges if his nomination exceeds the reduced

contractual parameters under the original Agreement resulting from

the release (i.e., if the original Shipper fails to reduce its

nomination, or does not adequately reduce its nomination, at the

first opportunity the Replacement Shipper has to nominate).

(e) Gas nominations for transportation pursuant to

released capacity are subject to the provisions of Section 7 of

these General Terms and Conditions. Gas nominations by a Shipper

utilizing released capacity awarded by Horizon shall constitute

Shipper's binding acceptance of the terms and conditions of the

capacity award by Horizon pursuant to this Section 15, including

Horizon's standard form of Agreement covering the Rate Schedule

applicable to the released capacity and the terms and conditions

of the Qualified Bid and the Capacity Release Request, in

accordance with Horizon's Tariff.

(f) Subject to the other provisions in this Section

15, in the event that there is no Qualified Bidder or Prearranged

Shipper for posted Eligible Firm Transportation Agreement capacity

during an open season, no capacity release will be awarded and the

Releasing Shipper shall retain the capacity sought to be released.