Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 46 Original Sheet No. 46 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

24.7 No Acceptable Offers

If Pipeline receives no acceptable bids for the available

capacity, or if Pipeline receives acceptable bids for only a

portion of the capacity, Pipeline and the current customer may

negotiate the terms of a new service agreement for the

remainder of the available capacity.

25. CAPACITY RELEASE

25.1 Purpose

This Section sets forth the specific terms and conditions which

shall apply on a uniform, non-discriminatory basis to the right

of firm Part 284 customers paying reservation charges to release

capacity entitlements on Pipeline's system.

25.2 Applicability

This Section is applicable to any customer that has executed a

service agreement for firm service and is paying a reservation

charge under Pipeline's open-access rate schedules. Any such

customer shall have the right to release any portion of the firm

capacity entitlements it holds provided that the capacity

released is acquired by a replacement customer pursuant to the

terms of this section.

25.3 General Provisions

Any firm customer is eligible to release its Part 284 capacity for

use by a replacement customer subject to the provisions of this

Section.

(i) A releasing customer may release any portion of its

capacity up to its Maximum Daily Quantity, and may release

capacity for a minimum term of one day up to the remaining

term of its firm service agreement.

(ii) Any replacement customer which has previously contracted

for released capacity may also release the capacity to

another party as long as the remaining term for the

released capacity is for more than one month. While there

is no restriction on the number of times capacity can be

released, the original terms and conditions of release

imposed by the releasing customer, including any right to

recall the capacity, will continue to apply to all

subsequent releases.