Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-104-001, Status: Effective

First Revised Sheet No. 142 First Revised Sheet No. 142 : Superseded

Superseding: Original Sheet No. 142

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) Pipeline will allow re-releases on the same terms and

basis as the primary release (except as prohibited by

regulations). 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