Empire Pipeline, Inc.

Original Volume No. 1

Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 176 Original Sheet No. 176

GENERAL TERMS AND CONDITIONS

12. CAPACITY RELEASE (Cont'd.)

12.6 Awards

The Replacement Shipper initiates confirmation of prearranged

deals electronically. Transporter shall communicate the award

via facsimile or Transporter's Web Site to the Potential Shipper

or Prearranged Shipper. The communication of an award, under a

Master Service Agreement for Capacity Release Transactions, is

the means by which Transporter shall satisfy its obligation

under NAESB Standard 5.3.2 to issue a contract within one hour

of award posting. Transporter must receive an acceptance of the

award from the Prearranged or Potential Shipper before it is

required to accept a nomination. The acceptance of the award may

be transmitted via the Web Site, or via facsimile. In the event

Transporter does not receive an acceptance of the award (i) for

release transactions subject to competitive bidding, by

4:00 p.m. central clock time on the day the posting period

concludes, or (ii) for release transactions not subject to

competitive bidding within one (1) hour of the communication of

the award, the allocation of the released capacity to said

Potential Shipper or Prearranged Shipper shall be nullified, and

Transporter shall post a notice to such effect on the Web Site.

In such event, the capacity shall be offered to the Potential

Shipper that submitted the best bid, in relation to the

applicable standard, from among remaining bids. In the event

that a Prearranged Shipper identified in an Existing Shipper's

Notice that is exempt from the competitive bidding procedure

fails to accept the award within the above-described period,

Transporter will so advise the Existing Shipper but will

otherwise have no further obligations with regard to the

Existing Shipper's Notice. Upon acceptance of the award, the

Potential or Prearranged Shipper, shall be referred to as the

Replacement Shipper.