Pine Needle LNG Company, LLC

Original Volume No. 1

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Effective Date: 02/22/2009, Docket: RP09-239-000, Status: Effective

Third Revised Sheet No. 70 Third Revised Sheet No. 70

Superseding: Second Revised Sheet No. 70

GENERAL TERMS AND CONDITIONS

(Continued)

20. CAPACITY RELEASE (Continued)

20.5 Prearranged Releases Subject to Prior Notice

Prearranged Releases with a term greater than one year at rates lower than maximum

tariff rates, or with a term greater than 31 days and less than or equal to one year,

must be posted for bidding pursuant to the requirements of this Section 20.5 unless

such release is to an asset manager or to a marketer participating in a state-

regulated retail access program pursuant to Section 284.8(h)(3) or Section 284.8(h)(4)

of the Commission's Regulations. For each release that is subject to competitive

bidding, Releasing Customer shall notify Pine Needle via Pine Needle's EBB service or

electronic data interchange of such release. Pine Needle shall post the notice of

prearranged offer for release on its EBB service or through electronic data

interchange. The notification shall include the following information:

(a) The identity of the Releasing Customer unless Releasing Customer elects

otherwise.

(b) The term of the release.

(c) All conditions of release objectively stated, including but not limited to any

recall conditions.

(d) The rate schedule and specific quantity of capacity to be released.

(e) The prearranged and maximum daily demand charge per Dt/d of vaporization quantity

entitlement applicable to the capacity to be released. For releases that become

effective on or after July 30, 2008, the maximum rate ceiling does not apply to

such releases provided the release is for a term of one year or less and the

release is to take effect on or before one year from the date on which the

pipeline is notified of the release.

(f) The start and end dates for the posting period for competitive bids.

(g) The criteria for selecting the best bid.

(h) The date and time of the offer posting.

(i) Length of time for a prearranged Customer to match the terms and conditions of

the "best bid".

(j) Whether contingent bids are permitted and, if so, the length of time during which

the contingent bidder(s) will be allowed to accept or decline the capacity

without condition.

(k) Any tie-breaking methodologies.

If the Best Bid is superior to the initial prearranged agreement, then Pine Needle

shall contact the prearranged Replacement Customer and the prearranged Replacement

Customer shall have the option to match the terms and conditions of the Best Bid in

accordance with Section 20.5(i) above and thereby be awarded such capacity. The

minimum length of time within which a prearranged Customer may match the Best Bid is

one half hour after the evaluation period ends in accordance with Section 20.9. The

terms of the winning bid shall be posted by Pine Needle in accordance with Section

20.2(d).