Venice Gathering System, L. L. C.

Original Volume No. 1

Effective Date: 03/01/2009, Docket: RP09-357-000, Status: Effective

Second Revised Sheet No. 117 Second Revised Sheet No. 117

Superseding: Substitute First Revised Sheet No. 117

GENERAL TERMS AND CONDITIONS

(Continued)

13. CAPACITY RELEASE

13.1 Eligibility

Any Shipper with an executed Firm Service Agreement

under VGS' Rate Schedule FTS-1 is eligible to release all or

part of its capacity to a Replacement Shipper on a permanent

or temporary basis, subject to the provisions of this

Section 13. A Shipper that has acquired firm capacity under

a volumetric rate pursuant to Rate Schedule FTS-2 or VGS'

Negotiated Rate provisions is not eligible to release its

capacity.

13.2 Types and Conditions of Releases

a. Permanent Release

A Releasing Shipper may release all or part of its

firm capacity under a Firm Service Agreement for the entire

remaining primary term of the Agreement (Permanent Release).

The Replacement Shipper must contract for the Primary

Receipt Point(s) and the Delivery Point specifically set

forth in a Releasing Shipper's Firm Service Agreement. A

Permanent Release operates as an assignment of capacity and,

except as provided below with respect to continuing payment

obligations, all of the terms and conditions applicable to

firm transportation service including the requirements

related to credit worthiness must be met by the Replacement

Shipper prior to the effective date of the assignment. The

Replacement Shipper shall execute a separate Firm Service

Agreement for the released capacity at the rate bid by the

Replacement Shipper and accepted by the Releasing Shipper up

to the maximum rate and for the primary term originally set

forth in the Releasing Shipper's Firm Service Agreement with

VGS. The Releasing Shipper will remain obligated to pay the

difference, if any, between the accepted bid and the

applicable rate for the remainder of the existing agreement

term. Permanent releases with a remaining term of one year or

less , if the release is to take effect on or before one (1) year

from the date on which VGS is notified of the release, may be in

excess of the maximum tariff rate. The rate for all other

Permanent Releases with a remaining term of one year or less, and

for a Permanent Release with a term greater than one (1) year is

capped at the maximum tariff rate.