Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

Original Sheet No. 278A Original Sheet No. 278A : Effective

GENERAL TERMS AND CONDITIONS

(continued)

Shipper's offer to release under such a pre-

arranged transaction shall be subject to the prior

posting and bidding procedures described in

Sections 19.3 - 19.4 below, with the pre-arranged

designated replacement Shipper being given a right

to match the best bid submitted during the bid

period; provided, however, if a pre-arranged

transaction with a designated replacement Shipper

is for a period of thirty-one (31) Days or less,

the releasing Shipper shall provide notice to

Transporter in accordance with this section and

may implement the release without complying with

such prior posting and bidding procedures.

Further, if the releasing Shipper provides notice

of a pre-arranged release in which the designated

replacement Shipper has agreed to meet all terms

and conditions and to pay the maximum rate for

terms of more than thirty-one (31) Days, such

release also may be implemented without being

subject to such prior posting and bidding

procedures. Notice of such exempted releases, if

releases are non-standard, or subject to special

terms and conditions, shall be posted on

Transporter's EBB as soon as practicable, but no

later than two (2) Business Days after the

transaction commences. If releasing Shipper

desires to upload, via Transporter's EBB or

electronic data interchange, pre-arranged

releases, all such releases must be valid and

complete. The replacement Shipper shall initiate

confirmation of its pre-arranged release

electronically.