Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 08/15/2007, Docket: RP07-526-000, Status: Effective

Original Sheet No. 111B Original Sheet No. 111B : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

3. CONTRACTING FOR SERVICE (continued)

3.7 Sale of Capacity. Upon the availability of new storage capacity

resulting from an expansion of Saltville's facilities, Saltville

shall sell such capacity to prospective Customers either via the

open season procedures described in Section 3.8 below or via the

first-come, first-served procedures described in Section 3.9

below, with the selection of the procedures being at Saltville's

sole option.

3.8 Open Season.

(a) Notice of open season. If Saltville elects to conduct an

open season pursuant to Section 3.7 above or if an open

season is required pursuant to Section 8 of Rate Schedule

FSS, Saltville shall post notice of the open season on its

Internet Web site. Such notice shall set forth when the

open season begins and ends, the type of service being

offered, the minimum rates, if any, Saltville will accept

for the available capacity, how and where interested parties

may submit requests for service, the criteria that will be

used to evaluate bids ("Bid Evaluation Procedures"), and

additional details about the open season.

(b) Duration. An open season held pursuant to Section 3.7 above

shall be held for a period of not less than five (5)

Business Days. An open season for storage capacity held

pursuant to Section 8 of Rate Schedule FSS shall be held

according to the timeline specified in Section 8.2(b) of

such rate schedule. During this time, Saltville will accept

bids from potential Customers for the service identified in

the notice of the open season. All bids submitted in

response to a notice of an open season must be submitted to

Saltville via the LINK® System.

(c) At the conclusion of the open season, the value of each

submitted bid will be determined according to the Bid

Evaluation Procedures. Saltville reserves the right to

reject any bid which (i) may detrimentally impact the

operational integrity of Saltville's facility, (ii) yields

an economic value that is unacceptable to Saltville, (iii)

does not satisfy all of the terms of a specific open season,

(iv) does not contain all of the required information

specified in the notice of the open season, (v) contains

terms and conditions other than those contained in

Saltville's FERC Gas Tariff, and/or (vi) does not meet

Saltville's creditworthiness requirements set forth in

Section 3.4 of the General Terms and Conditions. If

Saltville rejects any request for available capacity posted

pursuant to this Section 3.8, Saltville will notify the

potential Customer that submitted the rejected bid of the

reason(s) for such rejection via e-mail.