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. 3204 Original Sheet No. 3204 GENERAL TERMS AND CONDITIONS Section 20 (Cont'd) 20.4 Reservation Of Capacity For Expansion/Extension Projects Texas Gas may elect to reserve for a future expansion/extension project any unsubscribed or unallocated capacity or capacity under expiring or terminating service agreements where such capacity is not subject to a right of first refusal or Customer does not exercise its right of first refusal to retain the capacity. Texas Gas may only reserve capacity for a future expansion/extension project for which an open season has been or will be held within one (1) year of the date that Texas Gas posts such capacity as being reserved. Prior to reserving capacity for an expansion/extension project, such available capacity shall have been posted in accordance with Section 8.1 on Texas Gas' Internet Website (Informational Postings web site) for at least five (5) business days. Capacity shall be awarded or allocated in accordance with Texas Gas' tariff. Capacity may be reserved for expansion/extension projects only for a 12-month period prior to Texas Gas filing for certificate approval for construction or acquisition of proposed expansion/extension facilities, and thereafter until all expansion/extension facilities related to the certificate filing are placed into service by Texas Gas. If Texas Gas reserves capacity for an expansion/extension project, it will notify Customers of its intent as part of Texas Gas' posting of capacity on its Informational Postings web site. Texas Gas' posting for reserved capacity for future expansion/extension projects shall include the following information: (a) a description of the project for which the capacity will be reserved; (b) the total quantity of capacity to be reserved; (c) the location of the proposed reserved capacity on the pipeline system; (d) whether, and if so when, Texas Gas anticipates that an open season for the capacity will be held or the reserved capacity will otherwise be posted for bids; (e) the projected in-service date of new facilities; and (f) on an ongoing basis, how much of the reserved capacity has been sold on a limited-term basis that would otherwise be eligible for a right of first refusal. Texas Gas will make reasonable efforts to update the reservation posting up to the in-service date of the project to reflect any material changes in the scope of the project. If unsubscribed capacity that has been posted for bid remains unsubscribed after posting, and if such unsubscribed capacity is insufficient to serve the expansion/extension project, the reservation posting or open season will include a non-binding solicitation for turnback capacity from Texas Gas' existing Customers to serve the expansion/extension project. Texas Gas shall post on its Informational Postings web site a non-binding solicitation for expansion project related turnback capacity no later than 90 days after the close of an expansion project's open season specifying the minimum term for a response to the solicitation. If there are material differences between the terms and conditions imposed on the expansion project open season and the mandatory pre-reservation open season, Texas Gas shall hold another open season for the available capacity that uses the same terms and conditions used for the expansion project open season. If the available capacity open season is held subsequent to the expansion open season, Texas Gas shall use the same terms and conditions used in the expansion open season.