Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/24/1998, Docket: RP98-194-000, Status: Effective

Third Revised Sheet No. 239 Third Revised Sheet No. 239 : Effective

Superseding: Second Revised Sheet No. 239

GENERAL TERMS AND CONDITIONS

(continued)

failure to perform hereunder if such failure is

due to good faith compliance with the requirements

of any such laws, orders, rules or regulations.

17. MARKETING AFFILIATES:

Pursuant to this Tariff, Transporter performs

open access transportation and storage service

for various Shippers, including Transporter's

unbundled merchant division and affiliated

marketing companies. Transporter provides such

open access service on a non-discriminatory

basis. To insure that current and prospective

Shippers have equal access to such information as

may be required for the arrangement and ongoing

management of their services, Transporter states:

17.1 Facilities and Personnel. Except as described below,

the offices of all of Transporter's operating personnel

engaged in transportation (including storage) related

activities (including certain purchase and/or sales

activities required of Transporter's operating

personnel to support its transportation activities

including, without limitation, Transporter's monthly

cash-balancing program) are located on separate

floors and/or different cities from (1) the offices

of the operating personnel of the unbundled merchant

division and (2) the offices of the operating personnel

of NorAm Energy Services, Inc. ("NES") and other

affiliated marketing companies (certain such offices

are located in separate buildings or cities). The

offices of Transporter's operating personnel are

located in the NorAm Energy Corp. building at

525 Milam Street, Shreveport, Louisiana 71101 and at

1111 Louisiana, Houston, Texas 77002-5231. Transporter

shares other equipment and facilities which are

provided by the corporate parent, such as a telephone

system and computer mainframe equipment (with access

restricted for marketing affiliates and the unbundled

merchant division to information generated by or for

such entities) but does not share any operating

personnel with any of its marketing affiliates or its

merchant division.