Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 459 First Revised Sheet No. 459 : Effective

Superseding: Original Sheet No. 459

GENERAL TERMS AND CONDITIONS

(continued)

30. SEGMENTATION OF CAPACITY (continued)

30.4 In addition to Transporter's right to determine operational

feasibility on a case-by-case basis, as set out in Section 30.7

below, a purported segmentation of firm capacity (whether for a

Shipper's own use or on release) shall not be operationally

feasible if: (a) Pools are nominated as Segment Receipt Point(s),

absent a determination by Transporter that the proposed

segmentation would not result in an impermissible overlap of

capacity or otherwise result in a greater level of entitlement

than the entitlement under the original Service Agreement prior to

segmentation; (b) the segmentation would purport to result in

primary capacity rights with respect to a Primary Path Segment in

a direction opposite to the direction of the Primary Path under

the Service Agreement being segmented; or (c) a proposed

segmentation would purport to identify a Primary Path or Primary

Path Segment within Transporter's Reticulated System.

30.5 Transporter shall not be obligated to accept nominations or

releases of capacity for any purported Primary Path Segment or

combination of Primary Path Segments that would (a) result in an

impermissible overlap of capacity or otherwise result in a greater

level of entitlement than the entitlement under the original

Service Agreement prior to segmentation or (b), when a Primary

Path is being segmented for a Shipper's own use, result in receipt

or delivery quantities at any single Receipt or Delivery Point

greater than the quantities that Transporter was contractually

obligated to receive and deliver at the Primary Receipt and

Delivery Points defining the Primary Path prior to segmentation.

A releasing Shipper may not re-release a released Primary Path

Segment until such time as the releasing Shipper either recalls

the released Primary Path Segment or the released Primary Path

Segment reverts to the releasing Shipper at the end of the release

term. Replacement Shippers that desire to re-release a released

Primary Path Segment may only release transportation capacity

within their acquired Primary Path Segment. The sum of capacity

released in any Primary Path Segment cannot exceed the level of

entitlement under the original Service Agreement prior to

segmentation.