ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 07/05/2010, Docket: RP10-824-000, Status: Effective

Eleventh Revised Sheet No. 161 Eleventh Revised Sheet No. 161

Superseding: Tenth Revised Sheet No. 161

GENERAL TERMS AND CONDITIONS

(Continued)

21.2 Execution of Capacity Release Agreements.

(a) Contractual Obligations. Transporter and Replacement Shipper must have

a Master Service Agreement in effect pursuant to Section 21.1, above.

In the event a Replacement Shipper does not satisfy Transporter's

creditworthiness requirements such Shipper shall be required to comply

with the creditworthiness requirements of Section 18.5 of these General

Terms and Conditions. All Replacement Shippers shall be required to

accept by a release all transportation rights and obligations of the

Releasing Shipper with respect to the capacity released, including

nominations and Primary Routes. Unless otherwise agreed by

Transporter, the Releasing Shipper shall remain fully liable to

Transporter for all reservation charges, including reservation type

surcharges and direct bills, that were due under the Releasing

Shipper's Agreement, unless Replacement Shipper has agreed to pay

Transporter maximum rates, and to accept all obligations of the

Releasing Shipper under the Releasing Shipper's Agreement for the

remaining term of such Releasing Shipper's Agreement.

(b) Billing. Pursuant to Sections 15, 17 and 21.2(c) of these General Terms

and Conditions, Replacement Shipper shall be billed for its services the

applicable rates and charges set forth in Section 4.1 and 4.2 of these

General Terms and Conditions, and further provided that:

(1) Transporter shall bill the Releasing Shipper the

difference between (1) the Releasing Shipper's rates

and charges under its Service Agreement and (2) any

additional reservation charges applicable under Section

4.1 and 4.2 of these General Terms and Conditions in

the event that the Releasing Shipper has agreed to be

billed any such additional reservation charges as part

of its capacity release offer otherwise those

incremental charges will be billed to the Replacement

Shipper. Transporter shall also bill the Releasing

Shipper in the event of default in payment of the

Replacement Shipper.

(2) If the Replacement Shipper elevates Secondary Point(s)

to Primary Point(s) in accordance with the provisions

of Section 2.4 of these General Terms and Conditions,

then Transporter shall bill the Releasing Shipper the

difference between (1) the Releasing Shipper's rates

and charges under its Service Agreement and (2) any

additional reservation charges applicable under

Sections 2.4(b), 4.1 and 4.2 of these General Terms

and Conditions in the event that the Releasing Shipper

has agreed to be billed any such additional

reservation charges as part of its capacity release

offer, otherwise those incremental charges will be

billed to the Replacement Shipper.

(3) If the Replacement Shipper nominates to Secondary

Point(s) outside of the Rate Segment where the

Releasing Shipper's Primary Point is located, then the

Replacement Shipper shall be billed the incremental

Rate Segment differential to the Secondary Point, plus,

if applicable, the amount of reimbursement required to

the Releasing Shipper in accordance with Section

21.1(g)(14) of these General Terms and Conditions.