Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 10/01/2009, Docket: RP09-970-001, Status: Effective

Second Revised Sheet No. 454 Second Revised Sheet No. 454

Superseding: First Revised Sheet No. 454

GENERAL TERMS AND CONDITIONS

(Continued)

42. CAPACITY RELEASE (Continued)

42.7 Submission of Offers and Bids

(a) Offers for capacity to be released and bids for released capacity shall be

submitted to Seller via 1Line or electronic data interchange. Offers are binding

until electronic notice of withdrawal is received by Seller. For each business

day, all objectively stated and nondiscriminatory approved offers for release

capacity received by Seller from Releasing Shippers will be made available on

1Line or through electronic data interchange in accordance with Section 42.9.

Where unanticipated circumstances justify, such offers may be withdrawn unless a

minimum bid has been submitted for such capacity.

(b) All potential Replacement Shippers must have satisfied Seller's requirements for

credit worthiness pursuant to Section 32 of the General Terms and Conditions of

Seller's Volume No. 1 Tariff prior to submitting a bid for firm capacity posted

by a Releasing Shipper. If a party does not qualify as a qualified Replacement

Shipper pursuant to this section, the party cannot bid on a Releasing Shipper's

offer.

(c) Submission of a bid for capacity release shall be binding, provided however, a

potential Replacement Shipper may withdraw a bid until the close of the posting

period for competitive bids. If a potential Replacement Shipper submits a new

bid for released capacity, the existing bid for the same capacity must first be

withdrawn, and any new bid for that released capacity must be at an equal or

higher value than the previous bid. Bids submitted by a Replacement Shipper are

binding until withdrawn.

(d) Only bids for reservation charges will be allowed, stated either as: (1) a rate

per dt of TCQ (for transportation reservation rate releases), (2) a rate per dt

of Storage Demand, a rate per dt of Storage Capacity and, if applicable, a rate

per dt of Storage Injection Quantity (for storage reservation rate releases), (3)

a rate per dt delivered (for transportation volumetric releases), or (4) a rate

per dt of withdrawal quantities, a rate per dt of storage balance and, if

applicable, a rate per dt of injection quantities (for storage volumetric

releases). The maximum rate applicable to capacity release transactions shall be

Seller's maximum reservation rates, maximum storage rates (storage demand,

capacity and if applicable, injection demand), maximum rate per dt delivered (for

transportation volumetric releases) or maximum rate per dt withdrawn, stored and

if applicable, injected (for storage volumetric releases) as set forth under the

applicable rate schedules. Such maximum rate shall be inclusive of any

applicable demand surcharges. For releases that become effective on or after

July 30, 2008, the maximum rate ceiling does not apply to such releases provided

the release is for a term of one year or less and the release is to take effect

on or before one year from the date on which the pipeline is notified of the

release. The rate paid in any capacity release transaction not subject to the

maximum rate ceiling will not be subject to refund.

(e) Releasing and Replacement Shippers shall hold Seller harmless with regard to any

claim which may be raised by any party regarding the selection of a Best Bid,

except to the extent that such party successfully establishes that Seller has

incorrectly selected the Best Bid as the result of the negligent action or

willful misconduct of Seller.

(f) Potential shippers bidding for capacity shall have access to other potential

shippers' bids, excluding bidder's identity, during the bidding process.

(g) Capacity offered for release by a Releasing Shipper shall be posted as a Primary

Path release. Potential Replacement Shippers shall bid for such capacity based

on the posted Primary Path.

(h) Releasing shipper may not extend the bid period or the pre-arranged deal match

period, without posting a new release.