Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 07/12/2009, Docket: RP09-763-000, Status: Effective

First Revised Sheet No. 469 First Revised Sheet No. 469

Superseding: Original Sheet No. 469

GENERAL TERMS AND CONDITIONS

(Continued)

49. PROCEDURES FOR ALLOCATING AVAILABLE FIRM CAPACITY

49.1 This Section 49 sets forth procedures for allocating existing firm capacity that

becomes available on Seller's system other than through the applicable provisions of

Section 42 and not otherwise allocated pursuant to the right of first refusal

procedures contained in Section 48. Firm transportation capacity subject to the

allocation procedures set forth in this Section 49 includes firm transportation

capacity that becomes available from (i) existing firm transportation service

performed under a Part 284 Rate Schedule with a primary term of one year or more that

is subject to Natural Gas Act Section 7(b) abandonment and for which abandonment

authority has been sought or obtained (ii) existing firm transportation service

performed under a Part 284 Rate Schedule with a primary term of less than one year and

(iii) existing firm transportation service provided under Section 157 and for which

abandonment authority has been sought or obtained. In the event firm capacity on

Seller's system becomes available as described herein, Seller shall post on 1Line all

relevant terms and conditions pertaining to such capacity and will solicit bids for at

least the following periods:

(a) One (1) business day for firm capacity which will be available for one month

or less;

(b) Five (5) business days for firm capacity which will be available for more than

one month but less than twelve months; and

(c) Thirty (30) business days for firm capacity which will be available for twelve

months or longer.

49.2 Seller shall evaluate and determine the best bid in accordance with one of the

following two methods, with the specific method identified in its notice for bid

solicitation:

(a) Highest net present value of reservation charges; or

(b) Highest rate bid, provided such bid meets Seller's minimum stated term.

For purposes of determining the highest bid under Sections 49.2(a) and (b),

Seller will use the reservation rates and other form of revenue guarantee bid,

not to exceed Seller's applicable maximum reservation rates. The value of a

bid proposing a reservation rate or other form of revenue guarantee which

exceeds Seller's applicable maximum reservation rates shall be determined

pursuant to the provisions in Section 53.3 of the General Terms and

Conditions. In the event Seller receives two or more bids of equal value, then

under method (a) the best bid shall be the bid with the shortest term and

under method (b) the best bid shall be the bid with the longest term.

49.3 If two or more potential Buyers submit best bids such capacity shall be allocated to

such potential Buyers ratably on the basis of the quantities bid.

49.4 In the event a potential Buyer's bid is accepted, and such potential Buyer otherwise

meets all qualifications for service under such rate schedule, Seller shall submit a

service agreement to Buyer which sets forth the terms of such bid. Buyer shall

execute the Service Agreement within thirty (30) days of receipt of the same.

49.5 Notwithstanding the above, Seller shall not be obligated to accept any bid or execute

a Service Agreement at a rate less than the maximum rate allowable under such rate

schedule.