ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 11/01/2006, Docket: RP06-613-000, Status: Effective

Third Revised Sheet No. 101D Third Revised Sheet No. 101D : Effective

Superseding: Second Revised Sheet No. 101D

GENERAL TERMS AND CONDITIONS

(Continued)

3.2 Capacity Reserved for Expansion Projects

Transporter reserves the right, but shall not be obligated, to reserve for

expansion projects capacity that is or will become available. Such available

capacity shall consist of the following types of existing or potential

unsubscribed capacity:

1) Capacity currently posted on Transporter's Internet site under

Informational Postings as unsubscribed, available capacity ("Unsubscribed

Capacity");

2) Capacity that will be returned to Transporter by an existing capacity

holder at the expiration of that Shipper's contract term(s) either

(i)pursuant to the provisions of Section 22, Right of First Refusal

("ROFR"), of these General Terms and Conditions ("ROFR Capacity"), or

(ii)by the termination of a contract that does not have a ROFR ("Non-ROFR

Capacity");

3) Capacity that is returned to Transporter by an existing capacity holder at

the expiration of that Shipper's capacity pursuant to the provisions of

Section 22 of these General Terms and Conditions ("Expiring Capacity");

and

4) Capacity that is returned to Transporter in response to a direct

solicitation from Transporter to existing capacity holders for permanent

releases of capacity to serve an expansion project ("Turnback Capacity").

Hereinafter, any references to the term "capacity" in this Section 3.2 shall

mean the four types of available capacity collectively, unless noted otherwise.

Before any capacity can be reserved by Transporter, it must first be posted on

Transporter's Internet site under Informational Postings as Unsubscribed

Capacity for at least five (5) Business Days. Such capacity will be awarded

pursuant to this Tariff (see Section 9 of these General Terms and Conditions).

Any available capacity that remains unsubscribed following the five (5) Business

Days posting can be reserved for an expansion project. Transporter shall notify

shippers of its reservation of capacity for an expansion project by making a

"reservation posting" on its Internet site. The reservation posting shall

include, but not be limited to, the following information: (1) a description of

the expansion project for which the capacity is being reserved; (2) the quantity

of capacity being reserved; (3) the location of the reserved capacity on the

pipeline system, specifying the affected pipeline locations and segments and

associated quantities within those locations and segments; (4) the estimated in-

service date of the expansion project; (5) the anticipated timing of the

expansion open season; and (6) on an ongoing basis, how much of the reserved

capacity has been sold on a limited-term basis that would otherwise be eligible

for a right of first refusal. Transporter shall make reasonable efforts to

update the reservation posting up to the in-service date of the expansion

project to reflect any material changes in the scope of the expansion project.