Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 479 Original Sheet No. 479

GENERAL TERMS AND CONDITIONS

(Continued)

55. RESERVATION OF CAPACITY

55.1 Reservation of Capacity for Service to Commence at a Future Date.

Seller may elect to enter into a prearranged deal with a creditworthy Buyer

("Prearranged Shipper") willing to execute a service agreement to start at a specific

date up to three years in the future for service utilizing either currently available

unsubscribed capacity or capacity expected to become available at some future date,

provided such capacity is not subject to a right-of-first-refusal or the applicable

Buyer does not exercise its right-of-first-refusal to retain the capacity. Seller

will separately identify on 1Line all capacity that is expected to become available

within the next thirty-six months. Seller will not enter into any pre-arranged deals

for capacity that has not previously been posted on 1Line as available capacity.

(a) As soon as the prearranged deal is entered into (but before capacity is

actually awarded or reserved by an executed service agreement), Seller will

post on 1Line the prearranged deal as part of an open season bidding process in

accordance with the provisions of Section 49 of these General Terms and

Conditions to permit other parties an opportunity to bid on the capacity on a

long-term basis. This open season bidding process will take place even if the

capacity has already been subject to an open season and is currently posted as

available. Any third party who meets Seller's creditworthiness standards, as

set forth in Section 32 of these General Terms and Conditions, wishing to

subscribe to the firm capacity, whether for service commencing immediately or

in the future, can participate in the open season.

(b) Bids will be evaluated on a net present value ("NPV") basis. Such evaluation

shall take into account the time value of the delay in Seller's receiving

revenue under a bid for firm service to commence in the future. If a competing

bid for service to commence immediately, or in the future, provides a higher

NPV than the prearranged deal, the Prearranged Shipper will have a one-time

right to match the highest NPV bid by notifying Seller in writing within

fifteen (15) business days of receiving Seller's notification of the best bid.

will be awarded the capacity; otherwise, the capacity will be awarded to the

shipper providing the highest NPV bid. If the Buyer to whom the capacity is

awarded meets all qualifications for service under the applicable 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.

(d) Once capacity for service to commence in the future is reserved, Seller will

make such capacity available on an interim basis in accordance with Section 49

of these General Terms and Conditions. A service agreement for capacity

available on such interim basis shall not be eligible for a right of first

refusal for purposes of Section 48 of these General Terms and Conditions.

55.2 Reservation of Capacity for Expansion Projects.

Seller may elect to reserve for a future expansion project any currently available

unsubscribed capacity or capacity expected to become available at some future date,

provided such capacity is not subject to a right-of-first-refusal or the applicable

Buyer does not exercise its right-of-first-refusal to retain the capacity.