Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 409 First Revised Sheet No. 409 : Effective

Superseding: Original Sheet No. 409

GENERAL TERMS AND CONDITIONS

(continued)

applicable under the relevant Rate Schedule attributable to its

usage of the released capacity. Transporter shall continue to

invoice the releasing Shipper all applicable charges under its

existing Service Agreement, including any additional or higher

reservation or demand charges (plus all surcharges and fixed costs

applicable thereto) resulting from replacement Shipper's

utilization of the released capacity in a manner inconsistent with

Transporter's agreement with the releasing Shipper, but excluding

commodity or usage charges (plus surcharges, fuel retentions,

penalties, etc.) invoiced to the replacement Shipper and

attributable to its usage of the released capacity. Invoices sent

to the releasing Shipper shall reflect a credit equal to any

reservation or demand charges (plus all surcharges and fixed costs

applicable thereto) being invoiced to the replacement Shipper for

the released capacity rights, or as otherwise agreed. If the

replacement Shipper fails to pay when due all or part of the

amounts credited to the releasing Shipper, Transporter shall

pursue payment from the replacement Shipper by notifying such

Shipper by registered letter, return receipt requested, that it

has five Days from receipt of such letter to pay the amount due

including any applicable interest. If the replacement Shipper

fails to pay such amount by the end of the fifth Day, Transporter

shall reverse the credit and invoice the releasing Shipper for

such past due amounts, plus applicable interest.

19.9 Rights and Obligations of the Parties.

(a) Unless Transporter otherwise agrees, the Service Agreement

between the releasing Shipper and Transporter shall remain

in full force and effect with the Shipper to receive a

credit to its invoice as described hereinabove. The

replacement Shipper's Service Agreement shall be fully

effective and enforceable by and against the replacement

Shipper. The replacement Shipper may also release capacity

pursuant to this section on the same terms and bases as the

primary release (except as prohibited by Section 30 of these

General Terms and Conditions and FERC regulations), and in

such event and for such purposes, shall be considered the

releasing Shipper.