Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 2801 Original Sheet No. 2801 GENERAL TERMS AND CONDITIONS Section 16 (Cont'd) (v) The rules in this subsection apply when a Releasing Customer chooses to release a segment of its capacity. In a zone where the Releasing Customer retains capacity and the Replacement Customer has acquired capacity, both the Releasing Customer and its Replacement Customer(s) shall have the right to use secondary points within the zone as permitted by Texas Gas' tariff; provided, however, that a Releasing Customer and its Replacement Customer(s) in the same zone may not use their secondary points in such a way that their total nomination within any segment exceeds the original contract demand in that segment, subject to the conditions as set forth in Section 17.2 If the sum of the nominations of a Releasing Customer and its Replacement Customer(s) in any segment exceed the Releasing Customer's original contract demand in that segment, then the nomination(s) of the Customer(s) whose secondary rights are subordinate to the other nominating Customer(s) shall be considered as request(s) for overrun service, which may be renominated and scheduled accordingly, if customer so chooses after Texas Gas' notification that such nomination was a potential overrun. The Customer may also elect not to renominate as overrun or to nominate an available service under some other contract or rate schedule. In such situation, a Releasing Customer's secondary rights shall be subordinate to a Replacement Customer's secondary rights within the segment the Replacement Customer acquired, while a Replacement Customer's secondary rights outside the segment it acquired shall be subordinate (a) to the Releasing Customer's secondary rights on the Releasing Customer's retained capacity and (b) to another Replacement Customer's secondary rights if the nomination is within a segment acquired by the other Replacement Customer. If two or more Replacement Customers each nominate to secondary points outside their respective segments, their rights are equal. If a Replacement Customer nominates to a secondary point in another Replacement Customer's segment and the Releasing Customer also nominates to a secondary point in the other Replacement Customer's segment, their rights are equal. If the sum of the nominations of the Releasing Customer and the Replacement Customer(s) in a segment exceed the original contract demand in that segment and their rights are equal, then their nominations shall be prorated as secondary firm up to the original contract demand and the excess prorated as requests for overrun service, which may be renominated and scheduled accordingly, if customer so chooses after Texas Gas' notification that such nomination was a potential overrun. The Customer may also elect not to renominate as overrun or to nominate an available service under some other contract or rate schedule.