Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-841-000, Status: Effective

Original Sheet No. 137A Original Sheet No. 137A

GENERAL TERMS AND CONDITIONS

26. CAPACITY RELEASE (continued)

26.2 Capacity Eligible for Release. (continued)

(b) Types of Release (Continued)

PREARRANGED RELEASES - BIDDING NOT REQUIRED (Continued)

(2) A release for more than one year at the maximum applicable

tariff rate does not require bidding.

(3) A permanent release of a long-term contract at the maximum

applicable tariff rate when the remaining term is less than

one year does not require bidding.

(4) Asset Management Agreements. A release of capacity to an

Asset Manager is exempt from bidding if the release contains

a condition that the Releasing Shipper may call upon the

Replacement Shipper to deliver to or purchase from the

Releasing Shipper a volume of gas up to 100 percent of the

daily contract demand of the released transportation

capacity. If the capacity release is for a period of one

year or less, the Asset Manager's delivery or purchase

obligation must apply on any day during a minimum period of

the lesser of five months (or 155 days) or the term of the

release. If the capacity release is for a period of more

than one year, the Asset Manager's delivery or purchase

obligation must apply on any day during a minimum period of

five months (or 155 days) of each twelve-month period of the

release, and on five-twelfths of the days of any additional

period of the release not equal to twelve months.

Payments or other consideration exchanged between the

Releasing and Replacement Shippers in a release to an Asset

Manager are not subject to the maximum rate.

(5) Retail Access Programs. A release to a marketer

participating in a state-regulated retail access program is

exempt from bidding when the released capacity will be

utilized by the Replacement Shipper to provide the gas

supply requirement of retail customers pursuant to a retail

access program approved by the state agency with

jurisdiction over the local distribution company that

provides delivery service to such retail customers.