Venice Gathering System, L. L. C.

Original Volume No. 1

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

Third Revised Sheet No. 141 Third Revised Sheet No. 141

Superseding: Second Revised Sheet No. 141

GENERAL TERMS AND CONDITIONS

(Continued)

b. Prearranged Releases Subject to Bidding

If the Prearranged Replacement Shipper for a release with a term of more

than one (1) year, or with a term of one (1) year or less, if the release is

to take effect more than one (1) year from the date on which VGS is notified

of the release, has not agreed to pay the maximum rate, and to the term and

release quantities, the Offer to Release Capacity will be posted in accordance

with Section 13. Releases for one (1) 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 at more than the maximum tariff rate, but must still be

posted. If VGS does not receive a better bid by the bid deadline, the

Prearranged Bid shall be deemed the best bid, and a Confirmation Letter must

be executed by the Prearranged Replacement Shipper in accordance with this

Section 13 and the terms of VGS' FERC Gas Tariff. If VGS receives a better

bid by the bid deadline, the Prearranged Replacement Shipper shall have the

right to match the terms of the better bid according to the time line

specified in Subsection 13.4. If the Prearranged Replacement Shipper matches

the better bid, the capacity shall be awarded to the Prearranged Replacement

Shipper and a Confirmation Letter must be executed by the Prearranged

Replacement Shipper. If the Prearranged Replacement Shipper fails to match

the best bid, the capacity will be awarded to the party(ies) making the best

bid in accordance with the terms specified in Subsection 13.7.

13.10 Segmenting and Flexible Point Rights

a. For services under Rate Schedule FTS-1, a Releasing Shipper may

segment its capacity; provided, however, a Releasing Shipper that segments its

capacity may not release and/or use overlapping segments of capacity if the

effect of such release or overlap is to increase capacity along a Shipper's

transportation path in excess of its MDRQ. A Replacement Shipper that

purchases only a segment of capacity may not use its capacity in a way that

would result in such Replacement Shipper using rights outside the path of the

segment of capacity it has purchased. A Replacement Shipper may designate

primary points consistent with contract demand and subject to available

capacity.

b. An FTS-1 Shipper holding a discount at a point will be entitled to

retain a discount rate if it chooses to segment, release capacity or use its

flexible receipt and delivery point rights to move gas to another point at

which VGS has extended discounts, provided that the segmented or secondary

point transaction is similarly situated to the transactions receiving the

discount at the secondary point. Requests to retain discounts under this

section will be processed within two hours following submission of the

request.