Monroe Gas Storage Company, LLC

Original Volume No. 1

Effective Date: 04/29/2009, Docket: RP09-447-000, Status: Effective

Original Sheet No. 156 Original Sheet No. 156

GENERAL TERMS AND CONDITIONS

(Continued)

8. CAPACITY RELEASE (Continued)

8.7 Best Bid (Continued)

(b) In default of Releasing Customer specifying a bid evaluation

standard, Operator shall determine the bid or bids generating the

highest net present value, using a 10% discount factor, based on

the rate bid (reservation or demand component), the applicable

quantity(ies) and term or period bid upon. In default of Releasing

Customer specifying a method to break ties priority will be given

first to the bid with the shortest term, and next to the bid

submitted first in time.

8.8 Qualification of Prospective Replacement Customer. A prospective

Replacement Customer must be on Operator's approved bidders list before

bids may be posted on the EIM System, must satisfy all requirements of

the applicable rate schedule and these General Terms and Conditions and

must have executed a Capacity Release Umbrella Agreement. To be on the

approved bidders list, the prospective Replacement Customer must satisfy

Operator's credit requirements as outlined in Section 2.3 of these

General Terms and Conditions, and provide Operator any information

required by Section 2.3 of these General Terms and Conditions. Such

credit appraisal shall be reevaluated and updated every three (3)

months. The prospective Replacement Customer shall remain on the

approved bidders list until such prospective Replacement Customer (i)

notifies Operator to the contrary, (ii) no longer meets the credit

qualifications established in Section 2.3 of these General Terms and

Conditions, or (iii) is suspended from the approved bidders list in the

event, and for such time as, such Replacement or Prearranged Customer

fails to pay part or all of the amount of any bill for service in

accordance with Section 13 (Billing and Payment) of these General Terms

and Conditions. Operator will apply its creditworthiness criteria to

assess the submission. On a not unduly discriminatory basis, Operator

will permit Replacement Customers not satisfying the creditworthiness

requirements to submit bids, if the Releasing Customer provides Operator

with a guarantee or other form of credit assurance in form and substance

satisfactory to Operator of all financial obligations of the Replacement

Customer with respect to the capacity being released by Releasing

Customer prior to the commencement of service to the Replacement

Customer.