Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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Effective Date: 12/31/2002, Docket: RP03- 99-000, Status: Pending

Second Revised Sheet No. 459 Second Revised Sheet No. 459 : Pending

Superseding: First Revised 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 Subject to the provisions of this Tariff, including but not

limited to, the provisions of this Section 30, a Shipper may

segment its Primary Path in a manner such that capacity in the

direction of the Primary Path and capacity in the opposite

direction of the Primary Path, each within applicable Contract

Limitations, is used to make deliveries to the same Delivery Point

at the same time. 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.