Quest Pipelines (Kpc)

Second Revised Volume No. 1

Effective Date: 03/01/2009, Docket: RP09-258-000, Status: Effective

First Revised Sheet No. 169 First Revised Sheet No. 169

Superseding: Original Sheet No. 169

GENERAL TERMS AND CONDITIONS (Continued)

No bids will be accepted for Service Agreements where the

Releasing Shipper notifies KPC in its Release Notice that it has

arranged for the assignment of its Service Agreement to a

Designated Replacement Shipper that is on the approved bidders

list and that has agreed to all conditions applicable to the

assignment if: (i) the Designated Replacement Shipper is an asset

manager as defined by FERC regulations at 18 C.F.R. Section 284.8;

(ii) the Designated Replacement Shipper is a marketer

participating in a state-regulated retail access program as

defined by FERC regulations at 18 C.F.R. Section 284.8; (iii) the

release is for a term of more than one year at the maximum rate;

or (iv) the release is for a term of thirty-one (31) days or less,

except rollovers. Any other capacity release and assignment shall

require advance posting and bidding. An assignment for which no

bids will be accepted may be submitted by electronic data

interchange and shall be acknowledged by the Designated

Replacement Shipper and posted on the IEC system by 9:00 a.m. on

the day of nomination. Bids to accept assignment of the Service

Agreement must specifically identify any contingencies and may be

made through the IEC System only. If the Releasing Shipper

requires a prepayment deposit, the party Submitting the bid must

concurrently submit the prepayment deposit through Electronic

Funds Transfer to a designated bank account established by KPC.

The capacity release procedure is applicable to all parties

included in the capacity release process; however it is only

applicable if: 1) all information provided by the parties to the

transaction is valid and, 2) there are no special terms or

conditions of the release.

A party may submit only one bid at a time in response to a Release

Notice. Once a party has submitted a bid, it may withdraw the bid

through the IEC System at any time prior to the close of the

posting period specified in Section 14.3(b) without prejudice to

its submitting another bid with an economic value equal to or

greater than the economic value of the withdrawn bid. If a bid is

not withdrawn prior to the close of the posting period, the bid

shall be binding on the party submitting the bid, subject to the

satisfaction of any contingencies the Releasing Shipper permits to

be satisfied after the Close of the bidding period.

Bids to accept assignment will be posted on the System with any

contingencies identified and with the bidder's identity deleted.