Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 60-000, Status: Effective

Third Revised Sheet No. 398 Third Revised Sheet No. 398 : Effective

Superseding: Second Revised Sheet No. 398

GENERAL TERMS AND CONDITIONS

(continued)

19. CAPACITY RELEASE (continued)

Shipper's offer to release under such a pre-arranged transaction

shall be subject to the prior posting and bidding procedures

described in Sections 19.3 - 19.4 below, with the pre-arranged

designated replacement Shipper being given a right to match the

best bid submitted during the bid period; provided, however, if a

pre-arranged transaction with a designated replacement Shipper is

for a period of thirty-one (31) Days or less, the releasing

Shipper shall provide notice to Transporter in accordance with

this section and may implement the release without complying with

such prior posting and bidding procedures. Further, if the

releasing Shipper provides notice of a pre-arranged release in

which the designated replacement Shipper has agreed to meet all

terms and conditions and to pay the maximum rate for terms of more

than thirty-one (31) Days, such release also may be implemented

without being subject to such prior posting and bidding

procedures. Notice of such exempted releases, if releases are

non-standard, or subject to special terms and conditions, shall be

posted on Transporter's Internet Web Site as soon as practicable,

but no later than two (2) Business Days after the transaction

commences. If releasing Shipper desires to upload, via

Transporter's Internet Web Site or electronic data interchange,

pre-arranged releases, all such releases must be valid and

complete. The replacement Shipper shall initiate confirmation of

its pre-arranged release electronically.