Empire Pipeline, Inc.

Original Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-267-000, Status: Effective

First Revised Sheet No. 163 First Revised Sheet No. 163

Superseding: Original Sheet No. 163

GENERAL TERMS AND CONDITIONS

12. CAPACITY RELEASE

This Section 12 sets forth a firm capacity release mechanism pursuant

to which Existing Shippers can voluntarily release and assign all or

part of their firm capacity rights to a Potential Shipper or a

Prearranged Shipper that wants to obtain that firm capacity. Existing

Shippers may release and assign their firm capacity on Transporter

only under this Section 12 of these General Terms and Conditions. The

capacity release timeline set out in this Section 12 is applicable to

all parties involved in the capacity release process: however, it is

only applicable if (1) all information provided by the parties is

valid, (2) and the Replacement or Prearranged Shipper is a qualified

pre-approved bidder pursuant to Section 12.4(a) hereof, (3) the

Existing Shipper does not request a release from further obligations

under its service agreement pursuant to Section 12.7 hereof, and

(4) there are no other special terms or conditions of the release,

except for terms and conditions pertaining to an asset manager's

obligation to deliver gas to, or purchase gas from, the Existing

Shipper, pursuant to Section 12.1(a)(xv). Transporter will support

volumetric release with volumetric commitments by fully accounting for

volumetric and reservation components consistent with the rules and

regulations enunciated by the Commission. Transporter will support

the upload of prearranged deals and the function of reputting by

releasing Shippers.

Except as otherwise specifically provided, written notices described

in this Section 12 must be addressed to:

Empire Pipeline, Inc.

Transportation and Exchange Department

Building #5

365 Mineral Springs Road

Buffalo, New York 14210

Notices via facsimile transmission described in this Section 12 must

be transmitted to (716) 827-2381.

12.1 Capacity Eligible For Release:

A Shipper under Rate Schedule FT may release its firm capacity

in whole or in part, on a permanent or temporary basis, and on a

recallable or non-recallable basis. Such Existing Shipper may

propose a Prearranged Shipper to obtain its released capacity

from Transporter.