Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 06/23/2000, Docket: RP00-300-000, Status: Effective

Third Revised Sheet No. 405D Third Revised Sheet No. 405D : Effective

Superseding: Second Revised Sheet No. 405D

GENERAL TERMS AND CONDITIONS (continued)

4) Capacity which is returned to Transporter by an existing capacity

holder at the expiration of that capacity holder's contract term(s)

("Expired Contract Capacity").

(Hereinafter, any references to the term "capacity" in this Section 5.8

shall mean the four types of capacity collectively unless noted otherwise).

Any capacity reserved by Transporter must first be posted on PASSKEY as

reserved. The reservation posting shall include, but not be limited to,

the following information: (1) a description of the expansion project for

which the capacity is being reserved; (2) the quantity of capacity being

reserved; (3) the location of the reserved capacity on the pipeline

system, including all mainline valves and associated quantities at those

valves; and (4) the estimated in-service date of the expansion project.

The reservation posting shall also include a non-binding solicitation for

Turnback Capacity to serve the expansion project, provided that

Transporter shall post the non-binding solicitation for Turnback Capacity

no later than 90 days after the close of the expansion project open

season. Transporter shall make reasonable efforts to update the

reservation posting up to the in-service date of the expansion project to

reflect any material changes in the scope of the expansion project.

Transporter may only reserve capacity for an expansion project for which

an open season has been held or will be held within one (1) year of the

date that Transporter posts such capacity on PASSKEY as being reserved.

Transporter will not, absent Commission approval, accept advance payments

to reserve capacity under this Section 5.8.

In addition to the foregoing, prior to reserving Expired Contract

Capacity, Transporter must make Expired Contract Capacity generally

available for bidding through an open season. The open season shall

conform to the provisions of Article XXVIII, Section 5 of these General

Terms and Conditions. When an Expired Contract Capacity open season is

held prior to the expansion project open season, Transporter shall have

the right to state in the Expired Contract Capacity open season posting

minimum terms and conditions for bids that would be acceptable for

consideration that are the same as the minimum terms and conditions

anticipated for the future expansion project open season. In the event

that the subsequent expansion project open season imposes minimum terms

and conditions that are materially different from the terms and conditions

imposed in the previous Expired Contract Capacity open season, Transporter

shall hold another open season for the Expired Contract Capacity that uses

the same minimum terms and conditions as were imposed for the expansion

project open season. If the expansion project open season is held prior

to or during the Expired Contract Capacity open season, Transporter shall

use the same minimum terms and conditions as used for the expansion

project open season.

Any capacity reserved under this Section 5.8 shall be made available for

transportation service pursuant to these General Terms and Conditions on a

limited-term basis up to the in-service date of the expansion project(s).

For such limited-term agreements, Transporter reserves the right to limit

any extension rights provided in the service agreement and pursuant to

Article III, Section 10.4 commensurate with the proposed in-service date

of the expansion project. Transporter will indicate in any open season

posting of the capacity any limitations on extension rights that will

apply to such limited-term transportation service.

Reservation of capacity under this Section 5.8 shall not in any way modify

or limit existing capacity holders' rights under Article III, including,

but not limited to Sections 10.4, 10.5, 11 and 12 of these General Terms

and Conditions.