Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 08/09/2010, Docket: RP10-956-000, Status: Effective

First Revised Sheet No. 2107 First Revised Sheet No. 2107

Superseding: Original Sheet No. 2107

GENERAL TERMS AND CONDITIONS

Section 9

(Cont'd)

9.5.4 Capacity Release:

(a) A negotiated rate shall not apply as a price cap for capacity

release transactions under Section 16 of the General Terms and

Conditions.

(b) Texas Gas and a Releasing Customer may, in connection with their

agreement to a negotiated rate hereunder, agree upon payment

obligations and credit mechanisms that vary from or are in addition

to those set forth Section 16.6 of the General Terms and Conditions,

provided that such agreements are filed as nonconforming service

agreements.

9.5.5 Filing Requirements: No later than the business day on which Texas Gas

commences service at a negotiated rate (or if the day on which Texas Gas

commences such service is not a business day, then the next business day

after Texas Gas commences such service), Texas Gas will file with the

Commission a copy of the negotiated rate agreement, and an affirmation that

the negotiated rate agreement does not deviate in any material aspect from

the applicable form of service agreement in Texas Gas' tariff.

9.5.6 Accounting For Costs and Revenues: The allocation of costs to, and the

recording of revenues from, service at negotiated rate(s) will follow

Texas Gas' normal practices associated with all of its services under this

Tariff. Texas Gas will maintain separate records of negotiated rate

transactions for each billing period. These records shall include the

volumes transported, the billing determinants, the rates charged and the

revenue received associated with such transactions. Texas Gas will

separately identify such transactions in Statements G, I and J (or their

equivalents) filed in any general rate proceeding. Should Texas Gas

negotiate surcharges or fuel retention amounts, it will credit full

recourse rate surcharge amounts to its surcharge accounts and credit

maximum recourse retainage levels to its retainage accounts for any such

negotiated transactions that it enters into.

9.5.7 Rate Treatment: Texas Gas shall have the right to seek in future general

rate proceedings discount-type adjustments in the design of its rates

related to negotiated rate agreements that were converted from pre-

existing discount agreements to negotiated rate agreements, provided that

the type of pre-existing service is not altered as a result of the

conversion to a negotiated rate. In these situations, Texas Gas may seek

a discount-type adjustment based upon the greater of the negotiated rate

revenues received or the discounted rate revenues which otherwise would

have been received. For purposes of this Section 9.5.7, a pre-existing

discount refers to those discount agreements that existed prior to

September 1, 2000.