Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 136 Substitute Original Sheet No. 136

Superseding: Original Sheet No. 136

GENERAL TERMS AND CONDITIONS

26. CAPACITY RELEASE (continued)

26.2 Capacity Eligible for Release. (continued)

(a) Capacity Eligible for Release (continued)

Upon releasing a Parcel, consistent with the terms and conditions

described herein, except as noted below with respect to permanent

releases, all Releasing Shippers shall remain ultimately liable for all

reservation charges billable for the originally contracted service. The

Releasing Shipper, whether a primary or secondary capacity holder, must

post the capacity it seeks to release on Transporter's Internet website

prior to the close of the Posting Period defined herein.

A Releasing Shipper may release all or a portion of its capacity for the

remaining term of its contract on either a temporary or permanent basis.

In the event of a permanent capacity release by a Shipper paying the

maximum recourse rate, the Right of First Refusal is conveyed to the

Replacement Shipper for that portion permanently released. Transporter

may not unreasonably refuse to relieve a Releasing Shipper of liability

under its contract and extinguish Releasing Shipper's contractual

obligations to Transporter with respect to that portion requested to be

permanently released provided that: 1) the Replacement Shipper is

creditworthy pursuant to Transporter's credit standards; and 2) the rate

paid by the Replacement Shipper is no less than either the rate

contracted between the Releasing Shipper and Transporter for the

remaining term of the contract or the maximum tariff rate, whichever is

less. Transporter may refuse to allow a permanent capacity release if

it has a reasonable basis to conclude that it will not be financially

indifferent to the release. If Shipper's request to permanently release

capacity is denied by Transporter, Transporter shall notify Shipper via

e-mail and shall include in the notification the reasons for such

denial.