Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 03/08/2010, Docket: RP10-366-000, Status: Superseded

Original Sheet No. 2303 Original Sheet No. 2303

GENERAL TERMS AND CONDITIONS

Section 11

(Cont'd)

(g) Any Customer who is awarded capacity shall execute a service agreement that

sets forth the terms and conditions of the Best Bid(s) for a

bidding party or, if applicable, of the original Request for Service,

including matched terms if an Original Customer matches the Best Bid(s).

Such service agreement shall be executed within two (2) business days of

its tender by Texas Gas if the service agreement term is less than one (1)

year, or within five (5) business days if the service agreement term is one

(1) year or longer. If the Customer fails or refuses to execute the

service agreement within the applicable time period, the Customer shall

forfeit all rights and entitlement to the subject capacity. The capacity

will be offered to the bidder with the next highest bid or re-sold in a

subsequent auction and such next highest bidder, if it accepts the offer,

or winner of the subsequent auction will be awarded the capacity and be

required to execute a service agreement as provided in this Section. Any

Customer awarded capacity who fails to timely execute a service agreement

will be required to pay Texas Gas an amount equal to the difference between

(i) the rate established by the applicable Customer's Best Bid(s)/Request

for Service, and (ii) the rate established when the capacity is awarded to

the next Best Bid(s) or resold via a subsequent bid or auction process and

contracted for, multiplied by the Customer's Contract Demand(s) and

Customer's contract Term.

(h) Texas Gas shall post the results of the auction on its Internet Web Site no

later than the close of business on the business day following the day of

the award. The posting will include:

(i) name of Customer(s) awarded capacity;

(ii) rate(s) of the Best Bid(s);

(iii) duration of contract;

(iv) Contract Demand;

(v) primary points; and

(vi) any affiliate relationship between Texas Gas and any

Customer awarded capacity.

11.2 Auction for Storage Service Subject to Market Based Rates

(a) The auction process for market-based Storage Service shall be initiated

either (i) by a Customer seeking Firm Storage Service subject to Market

Based Rate authority received in Docket No. CP07-405-000 under Rate

Schedule FSS-M or Interruptible Storage Service under Rate Schedule ISS-M,

or (ii) by Texas Gas seeking to sell Firm Storage Service subject to Market

Based Rate authority received in Docket No. CP07-405-000 under Rate

Schedule FSS-M or Interruptible Storage Service under Rate Schedule ISS-M.

A customer seeking such storage service can initiate the auction process by

submitting a Request for Service and the parties agreeing on the minimum

price and term of service. Texas Gas can initiate the auction process by

posting a notice on its Internet Web Site announcing specifics of the

capacity auction in accordance with the terms of paragraph (c), below.

(b) Texas Gas shall auction available FSS-M and ISS-M capacity that is not

subject to the right of first refusal procedures in Section 10.4 hereof via

its Internet Web Site. Texas Gas will post on its Internet Web Site either

its intention to initiate an auction or that a Customer has requested Texas

Gas to initiate an auction for its FSS-M or ISS-M storage capacity. Texas

Gas will also post on its Internet Web Site the following information:

(i) the quantity of capacity available for the auction;

(ii) the term for which the capacity is available for the

auction.