Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 07/09/2004, Docket: RP04-325-000, Status: Effective

Fourth Revised Sheet No. 266 Fourth Revised Sheet No. 266 : Effective

Superseding: Third Revised Sheet No. 266

GENERAL TERMS AND CONDITIONS

21. RELEASES OF FIRM CAPACITY (Continued)

21.11 Further Conditions on Release of Transportation Rights (Continued)

(l) Company shall accept nominations, schedule service, afford priority of

service and curtail service based on instructions and communications from

the Releasing Shipper and the Replacement Shipper that are consistent with

one another and with the terms and conditions of Company's Tariff and

their respective service agreements. In the event that instructions or

nominations from the Releasing Shipper and Replacement Shipper are, in

Company's sole opinion, inconsistent or conflicting, Company shall use

reasonable efforts to contact the Releasing Shipper and Replacement

Shipper to resolve the conflicting communications. In the event Company

is unable to resolve the conflict prior to the time that it must take the

required action, Company shall comply with the instructions of the

Releasing Shipper; provided however that such instructions must not be

inconsistent with Company's Tariff or the terms of either the Releasing

Shipper's or Replacement Shipper's service agreement, in Company's sole

opinion. The Releasing Shipper will indemnify Company against any claim

or suit by the Replacement Shipper, its successors or assigns, arising

from any action taken by Company in reliance upon the Releasing Shipper's

nominations and instructions and will hold Company harmless for any action

taken by Company in reliance upon the nominations and scheduling

instructions of the Replacement Shipper. The Replacement Shipper will

indemnify Company against any claim or suit by the Releasing Shipper, its

successors or assigns, arising from any action taken by Company in

reliance upon the nominations and scheduling instructions of the

Replacement Shipper and will hold Company harmless for any actions taken

by Company in reliance upon the instructions of the Releasing Shipper.

(m) A Releasing Shipper may release capacity under its transportation

agreement. If Releasing Shipper desires to release such capacity, then

Releasing Shipper's capacity shall be reduced by an amount equal to the

quantity released. Replacement Shippers who desire to re-release the

released capacity must obtain such right from the Releasing Shipper. The

sum of the capacity released cannot exceed the Releasing Shipper's

original capacity entitlements. Nominations to a point outside of the

released segment by the Replacement Shipper or within the released segment

by the Releasing Shipper shall be permitted. In the event that the

combined quantity nominated by the Releasing Shipper and the Replacement

Shipper exceed the Releasing Shipper's original mainline capacity

entitlements, Company shall accept nominations for quantities in excess of

the original mainline capacity entitlements in the overlapped portion of

its system. When an overlap occurs at a point between a Releasing Shipper

and its Replacement Shipper, in the circumstance of nominations to the

same point, such nominations are allowed as long as the Transportation

Quantity is not exceeded. When the Releasing Shipper and the Replacement

Shipper each nominate to a secondary point out of their respective

Transportation Path causing total nominated quantities to exceed a

capacity limitation at a location on Company's system, Company shall

schedule such nominations pursuant to Subsection 3.7 of the General Terms

and Conditions.