Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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

Original Sheet No. 47 Original Sheet No. 47 : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

(iii) Any party interested in acquiring capacity through

Pipeline's capacity release program must submit all

credit information required in Section 11.3 of these

General Terms and Conditions and be prequalified before it

can submit bids under the capacity release program.

(iv) Pipeline will enter into a service agreement with the

replacement customer prior to the commencement of

service which confirms the terms and conditions

applicable to the released capacity. A replacement

customer acquires all rights and obligations of the

releasing customer. If the replacement customer changes

primary receipt and delivery points, the releasing

customer is at risk as to whether it will be able to

regain its original primary points when the capacity is

returned. However, the releasing customer may condition

its release to prohibit the replacement customer from

changing the primary receipt and delivery points specified

in the service agreement.

(v) Irrespective of the release of its capacity, the releasing

customer remains bound and liable for performance under its

service agreement unless excused in writing by Pipeline.

The excuse of performance under a service agreement of

a releasing customer shall be at Pipeline's sole

discretion, and may be conditioned on the payment of an

exit fee and recovery by Pipeline of any amounts due. In

making a determination on excuse of performance, Pipeline

will exercise its discretion in a non-discriminatory

manner. In the case of a permanent release of capacity,

the releasing customer will be relieved of liability under

its Service Agreement if the replacement customer has

agreed to enter into a contract for the remaining term of

the releasing customer's service agreement and has agreed

to pay the maximum rate.

(vi) A releasing customer may release capacity on a firm or

interruptible basis, but not both simultaneously. If a

releasing customer has previously released its capacity on

an interruptible basis, it may elect to release the same

capacity on a firm basis during the interruptible release

term. A firm release will terminate the interruptible

release arrangement.