East Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 05/01/2000, Docket: RP00-534-000, Status: Effective

First Rev Fourth Revised Sheet No. 143 First Rev Fourth Revised Sheet No. 143 : Superseded

Superseding: First Rev Third Revised Sheet No. 143

GENERAL TERMS AND CONDITIONS (Continued)

17.11 Releases Permitted Without Prior Posting - A Releasing Shipper may elect

to release some or all of its transportation rights without prior

competitive bidding if its proposed release qualifies under this Section

17.11.

(a) Short-Term Release Election - Prior posting on PASSKEY, or

competitive bidding will not be required if:

i) the release term is thirty-one days or less; and

ii) either the Releasing Shipper acts as agent for the

Replacement Shipper with respect to the Released capacity

and agrees to remain directly liable for all demand charges

associated with the released capacity; or, prior to the

commencement of service, the Replacement Shipper enters into

a Released Transportation Service Agreement with Transporter

incorporating the information required by Section 17.2 in an

appropriate exhibit and establishes credit- worthiness,

subject to the same standards and procedures as are provided

for Bidders in Section 17.5(a); and

iii) the release is not rolled-over, renewed or otherwise

extended beyond 28 days from the effective date unless (a)

the proposed roll-over is at the maximum rate, (b) the

Releasing Shipper follows the prior posting and bidding

procedures set forth in Section 17.4 hereof; or (c) the

release does not contain the same capacity as, or overlaps

the capacity contained in, the original release; provided,

however, through September 30, 2002, or any later date

established by the Commission, the foregoing requirements

shall apply to any capacity release transaction for any

period of thirty-one (31) days or less, regardless of the

rate applicable to the release.

(b) Maximum Rate Pre-arranged Bidder: Additionally, prior posting on

PASSKEY and competitive bidding will not be required, subject to

the conditions set forth in Section 17.11(b)(iii) below, if a

Prearranged Bidder has agreed to Transporter's maximum applicable

rate stated in the Release Request, provided that:

i) the Releasing Shipper provides Transporter with the

information specified in Section 17.2 (a), (b), (c), (d),

(e), (f), (k), (m), (n), (o), and (p); and