Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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Effective Date: 06/01/2002, Docket: RP00-482-003, Status: Effective

First Revised Sheet No. 401 First Revised Sheet No. 401 : Effective

Superseding: Original Sheet No. 401

GENERAL TERMS AND CONDITIONS

(continued)

(d) Submission of a bid or pre-arranged release to Transporter

shall constitute the bidder's, or pre-arranged replacement

Shipper's, as applicable, agreement to pay Transporter the

applicable rates and charges posted in the offer or pre-

arranged release, as applicable, and any additional charges

applicable under this Tariff, and to abide by the terms and

conditions of this Tariff. The winning bidder's bid, or

the posting of the pre-arranged release, shall be binding.

The award of capacity as supplemented by the terms of the

form of Service Agreement for the applicable Rate Schedule,

both posted on Transporter's Internet Web Site, shall

constitute the replacement Shipper's Service Agreement.

Replacement Shipper may submit nominations to use capacity

acquired under this Section 19 at the first available

nomination opportunity afforded to Shippers by Transporter

contemporaneous with or after the completion of the

replacement Shipper's Service Agreement.

(e) If requested by releasing Shipper, and consistent with

applicable regulations, Transporter will not post minimum

bid or other terms specified by Shipper with the offer to

release; however, such terms will be posted when notice of

the winning bidder is posted. Further, unless a pre-

arranged transaction is exempt from the prior posting and

bidding procedures pursuant to Section 19.2 above,

Transporter will not post the name and the affiliate and/or

agent information of any pre-arranged replacement Shipper

except as part of a notice of winning bidder. Transporter

shall post valid and complete bids submitted but shall not

identify the bidders or the bidders' affiliate and/or agent

information. Releasing Shipper may request a date for bids

to be posted, provided that such request comports with the

standard timeline specified above. Transporter shall also

post offers to purchase capacity from those who desire

current Shippers to release capacity upon receipt of the

applicable information as set forth in this section.

(f) Non-standard notices of offers to release capacity, or

notices which are subject to special terms and conditions,

shall be posted on Transporter's Internet Web Site as soon

as is practicable, but no later than one (1) full Business

Day following receipt of a notice of offer which satisfies

the requirements set forth in this Section 19. Prospective

replacement Shippers shall have the following periods

(unless releasing Shipper designates a