Phillips Gas Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1993, Docket: RS92- 47-003, Status: Effective

Original Sheet No. 63 Original Sheet No. 63 : Effective

(2) Shipper Solicited Release: Capacity shall be

allocated in accordance with an agreement

negotiated between a Releasing Shipper and

a Prearranged Replacement Shipper. The

Prearranged Replacement Shipper should

provide PGPL with the terms of its

agreement with the Releasing Shipper.

(3) Other Methods: Available capacity may be

allocated on the basis of other objective and

non-discriminatory economic standards

which may be provided by the Shipper and

posted on the EBB.

Any third party, assignee, Replacement Shipper or

other party who acquires released capacity pursuant

to the Capacity Release Program set forth herein

must adhere to all terms and provisions of this

PGPL FERC Gas Tariff, First Revised Volume No.

(b) A Replacement Shipper or Prearranged

Replacement Shipper must comply with Section

17.3 of the General Terms and Conditions of this

Tariff. Such Shipper may submit a request for pre-

qualification for credit as a Shipper to PGPL in

order to expedite implementation of capacity

release service. For short-term releases (those for

a time period of less than one (1) year), a

Replacement Shipper or Prearranged Replacement

Shipper may not submit a bid, the economic value

of which exceeds that Shipper's established credit

limit. For long-term releases (those for a time

period of one (1) year of longer), if a Replacement

Shipper or a Prearranged Replacement Shipper

submits a bid, the economic value of which exceeds

that Shipper's established credit limit, that Shipper

must assure PGPL of its ability to pay for the

service in excess of the established credit limit

within one (1) day after notification that Shipper's

bid will be acceptable contingent upon Shipper's

demonstration of its ability to pay to PGPL's

satisfaction. Subject to a Prearranged Replacement

Shipper's right of first refusal, capacity shall be

allocated to the Potential Replacement Shipper