Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 06/12/2005, Docket: RP05-341-000, Status: Effective

Second Revised Sheet No. 256 Second Revised Sheet No. 256 : Effective

Superseding: First Revised Sheet No. 256

GENERAL TERMS AND CONDITIONS

21. CAPACITY RELEASE (Continued)

21.7 Rights and Obligations of Releasing Shipper

Notwithstanding any release hereunder, Releasing Shipper(s) shall remain

responsible for payment of the demand charge associated with the released

capacity up to the demand charge specified in the Releasing Shipper's Firm

Transportation Agreement with Company. However, Company and Shipper may agree

to a Negotiated Rate under a Firm Transportation Agreement and agree upon

payment obligations and crediting mechanisms, in the event of a capacity

release, that vary from or are in addition to those set forth herein and in

Subsection 21.13(a) of these General Terms and Conditions; provided that

nothing in the foregoing provision shall authorize Company or Shipper to

violate the FERC's policy with respect to negotiation of terms and conditions

of service.

Any increase in Company's rates, charges, and surcharges shall remain the

responsibility of the Releasing Shipper; provided, however, that the Releasing

Shipper may provide, in its capacity release offer, for the rates, charges or

surcharges for released transportation rights to increase in accordance with

any increases in Company's rates, charges and surcharges.

If a Shipper releases firm capacity, then Releasing Shipper's firm capacity

rights shall be reduced by an amount equal to the quantity released, in

accordance with Subsection 21.2 of these General Terms and Conditions, for the

period of the capacity release, except for any period that the firm capacity is

recalled by the Releasing Shipper (if permitted in the successful bid) and

until such capacity is reput to the Replacement Shipper, in accordance with

this Subsection 21.12.

A release for the entire remaining term of the Releasing Shipper's Firm

Transportation Agreement shall effect a permanent release or a temporary

release. In the event Releasing Shipper designates the capacity release offer

as a permanent release, the Replacement Shipper shall be subject to all rights

and obligations associated with the released capacity.

If a Releasing Shipper elects a temporary release, all contractual rights and

obligations associated with the released capacity remain with the Releasing

Shipper at the end of the term of the temporary release.

In accordance with the terms of a permanent release or a temporary release, the

Replacement Shipper shall execute a new Firm Transportation Agreement under the

applicable rate schedule pursuant to Part 284 of the Commission's regulations.

A Releasing Shipper shall describe fully in its capacity release offer any

rights to recall the capacity being released and under what conditions the

capacity shall be reput to the Replacement Shipper following any such recall.

A release by a Replacement Shipper shall not relieve the original Shipper or

the Replacement Shipper of their obligations under this Section 21.