T.W. Phillips Pipeline Corp.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 69 Original Sheet No. 69

GENERAL TERMS AND CONDITIONS

(Continued)

22.5.3. Releasing Shipper shall retain any Rights of First Refusal with respect

to the released capacity, unless such release is a permanent release.

22.5.4. Releasing Shippers may, to the extent permitted as a condition of the

capacity release, recall released capacity (scheduled or unscheduled) at

the Timely Nomination cycle and the Evening Nomination cycle, and recall

unscheduled released capacity at the Intra-Day 1 and Intra-Day 2 Nomina-

tion cycles by providing notice to Transporter by the following times for

each cycle: 8:00 a.m. Central Time for the Timely Nomination cycle; 5:00

p.m. Central Time for the Evening Nomination cycle; 8:00 a.m. Central

Time for the Intra-Day 1 Nomination cycle, and 3:00 p.m. for the Intra-

Day 2 Nomination cycle. Notification to Replacement Shippers provided by

Transporter within one (1) hour of receipt of recall notification.

22.5.5. Any bid submitted will bind Replacement Shipper or PRS to the terms of

the bid if Transporter selects such bid as the best bid. If all the in-

formation provided by the Releasing Shipper, the bidder/PRS is valid, the

Replacement Shipper is creditworthy, and there are no special terms and

conditions, Transporter will issue and execute the Addendum to the Capa-

city Release Transportation Agreement within one (1) hour of awarding the

winning bid.

22.5.6. The capacity release addendum number will be issued within one (1) hour

of the award posting. Nomination is possible beginning at the next avail-

able nomination cycle for the effective date of the capacity release

addendum; however, in no event will Gas flow on Replacement Shipper’s

agreement prior to the effective date of the release as posted in the

Shipper Notice.

22.5.7. Replacement Shipper is liable for all obligations attributable to the

rate schedule and related tariff provisions under which the release take

place.

22.5.8. Replacement Shipper is responsible for payment of the applicable Reserva-

tion Charge, Commodity Charge, and all other applicable charges and sur-

charges consistent with its winning bid. In the event of payment default,

subject to this section, Transporter may elect to terminate that Replace-

ment Shipper’s Capacity Release Service Agreement, which shall terminate

all service.