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First Revised Sheet No. 147 First Revised Sheet No. 147 : Superseded

Superseding: Original Sheet No. 147

GENERAL TERMS AND CONDITIONS (Continued)

release is thirty-one (31) days or less, provided,

however, that if such Releasing Customer has

previously released capacity to the Replacement

Customer under a prearranged deal within

twenty-eight (28) days prior to the commencement

date of the proposed prearranged release, then the

proposed prearranged release will be subject to the

competitive bidding requirements of this section.

(ii) Maximum Rate Release -- competitive bidding is not

required for a prearranged release if the

Replacement Customer agrees to pay the Pipeline's

maximum tariff rate applicable to the service type

being released for the entire term of the release.

All prearranged deals longer than thirty-one (31) days for

Capacity Release at less than maximum rate are subject to

the bidding procedures of Section 25.7 and the right of

first refusal set forth in Section 25.9.

25.7 Bidding Process.

a. The length of the bidding period for released capacity shall

be as specified in the notice provided to the Pipeline by

the Releasing Customer. All bids must be submitted during

the bidding period through the electronic communications

system or via EDI. Bids which are incomplete or are

submitted in some different form or after the bidding period

will not be eligible to receive the released capacity. Each

bid for released capacity must contain the following

information:

(i) Bidder's legal name, address, and the name and

title of the individual responsible for authorizing

the bid;

(ii) The term of the proposed acquisition;

(iii) The maximum rate(s) Bidder is willing to pay for

the capacity;

(iv) The quantity desired;

(v) Whether or not the Bidder is an affiliate of the

Releasing Customer or of Pipeline; and

(vi) Any other information requested by the Releasing