Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 04/01/1998, Docket: RP98- 85-000, Status: Effective

Second Revised Sheet No. 278 Second Revised Sheet No. 278 : Effective

Superseding: First Revised Sheet No. 278

GENERAL TERMS AND CONDITIONS

(continued)

(j) whether contingent bids that extend beyond the

bid period may be submitted, how to evaluate and

prioritize such bids against non-contingent bids,

and whether, the terms and conditions under

which, and/or for what time period, the next

highest bidder will be obligated to acquire the

capacity should the winning contingent bidder

withdraw its bid;

(k) any extensions of the minimum posting/bid

periods;

(l) whether releasing Shipper desires to utilize the

first-come, first-served option for short-term

releases of thirty-one (31) Days or less

described in Section 19.4 below and any minimum

terms applicable thereto;

(m) other special terms and conditions Shipper

imposes on the release of its capacity, including

minimum rates, term, quantity, etc.; and

(n) releasing Shipper may specify dollars and cents

or percentages of the applicable maximum rate as

the denomination for bids in its offer to

release, and bids submitted must comport with the

releasing Shipper's specification.

A Shipper may withdraw its offer to release by

providing electronic notice to Transporter of such

withdrawal, which notice must be received by

Transporter prior to the close of the applicable bid

period; provided, however, such withdrawal shall only

be valid if such Shipper has an unanticipated

requirement for such capacity and no bid meeting the

minimum requirements imposed in the offer has been

made. The notice must contain the reason for

withdrawal which Transporter shall post on its EBB.

19.2 Pre-arranged Releases. Shipper may designate an

entity (a pre-arranged designated replacement Shipper)

to which it has agreed to release the capacity upon

specified terms and conditions.