Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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

First Revised Sheet No. 143 First Revised Sheet No. 143 : Superseded

Superseding: Original Sheet No. 143

GENERAL TERMS AND CONDITIONS (Continued)

to apply to all subsequent releases.

(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.