Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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

First Revised Sheet No. 283 First Revised Sheet No. 283 : Effective

Superseding: Original Sheet No. 283

GENERAL TERMS AND CONDITIONS

(continued)

applicable under the relevant Rate Schedule

attributable to its usage of the released capacity.

Transporter shall continue to invoice the releasing

Shipper all applicable charges under its existing

Service Agreement, including any additional or higher

reservation or demand charges (plus all surcharges

and fixed costs applicable thereto) resulting from

replacement Shipper's utilization of the released

capacity in a manner inconsistent with Transporter's

agreement with the releasing Shipper, but excluding

commodity or usage charges (plus surcharges, fuel

retentions, penalties, etc.) invoiced to the

replacement Shipper and attributable to its usage of

the released capacity. Invoices sent to the

releasing Shipper shall reflect a credit equal to any

reservation or demand charges (plus all surcharges

and fixed costs applicable thereto) being invoiced to

the replacement Shipper for the released capacity

rights, or as otherwise agreed. If the replacement

Shipper fails to pay when due all or part of the

amounts credited to the releasing Shipper,

Transporter shall pursue payment from the replacement

Shipper by notifying such Shipper by registered

letter, return receipt requested, that it has five

days from receipt of such letter to pay the amount

due including any applicable interest. If the

replacement Shipper fails to pay such amount by the

end of the fifth day, Transporter shall reverse the

credit and invoice the releasing Shipper for such

past due amounts, plus applicable interest.

19.9 Rights and Obligations of the Parties.

(a) Unless Transporter otherwise agrees, the Service

Agreement between the releasing Shipper and

Transporter shall remain in full force and

effect with the Shipper to receive a credit to

its invoice as described hereinabove. The

Service Agreement executed by the replacement

Shipper shall be fully effective and enforceable

by and against the replacement Shipper. The

replacement Shipper may also release capacity

pursuant to this section, on the same terms and

bases as the primary release (except as

prohibited by FERC regulations), and in such

event and for such purposes, shall be considered

the releasing Shipper.