Texas Gas Transmission, LLC

Third Revised Volume No. 1

Effective Date: 03/04/2010, Docket: RP10-360-000, Status: Effective

Third Revised Sheet No. 2800 Third Revised Sheet No. 2800

Superseding: Second Revised Sheet No. 2800

GENERAL TERMS AND CONDITIONS

Section 16

16. Capacity Release

16.1 Purpose - This Section 16 sets forth the specific terms and conditions applicable

to the implementation by Pipeline of a Capacity Release Program, on its interstate

pipeline system, pursuant to Section 284.8 of the Commission's Regulations.

Existing Customers may release and assign their capacity in Pipeline only under

this Section 16.

16.2 Applicability - This Section 16 is applicable to any Customer who has executed a

Part 284 service agreement with Pipeline under Rate Schedule FT, STF, NNS, NNL,

SNS, WNS, FSS, or FSS-M.

16.3 General Terms and Conditions Applicable to Capacity Release

(a) Quantity, Scheduling, Contingent Bids

(i) Releasing Customers may release and assign all capacity held under

a particular service agreement, a percentage of such capacity or a

segment of such capacity. Releasing Customers may release and

assign percentages of capacity to several different Replacement

Customers.

(ii) Regardless of the percentage or portion of capacity released and

assigned, the Releasing Customer remains liable for the reservation

charges (and any surcharges related thereto) applicable to the

Releasing Customer's service agreement with Pipeline. However,

Releasing Customer will not be liable for any penalties, imbalances

or commodity charges and surcharges thereon, incurred by the

Replacement Customer.

(iii) Capacity released and assigned to a Replacement Customer will be

scheduled and curtailed on a firm basis in accordance with Section

12 of the General Terms and Conditions herein. Any right of

recall reserved as described in subsection (b) below will not

affect the priorities in scheduling and curtailment as stated

herein.

(iv) Releasing Customers may choose to allow the submission of

contingent bids; however, any provision for contingent bids must

function in a non-discriminatory manner and cannot be used to

discriminate against any potential Replacement Customer.