Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 97 Original Sheet No. 97 : Effective

Superseding: Original Sheet No. 97

GENERAL TERMS AND CONDITIONS

(Continued)

12.6 Any Initial Assignment pursuant to Section 12.2

must be effectuated before CIPCO releases capacity

under the terms of the upstream pipeline's FERC Gas

Tariff. If CIPCO releases capacity thereafter under

the capacity reallocation provisions of the FERC Gas

Tariff of the upstream pipeline, the capacity remains

assignable as an Additional Assignment; however, any

release made prior to the Additional Assignment would

remain in force for its term.

12.7 On October 1, 1993, CIPCO shall post on its

electronic bulletin board for a period of thirty (30)

days a complete description of any firm service

entitlements available for assignment under this

Section 12, including the upstream pipeline's Rate

Schedule, contract quantity, current effective rates

and charges, and receipt and delivery points.

Any party interested in acquiring the capacity

available under this Section 12 must submit a bid to

CIPCO either in writing or via CIPCO's electronic

bulletin board prior to the end of the thirty (30)

day posting period specified in this Section 12.

Such bids must specify the upstream pipeline and rate

schedule, contract quantity desired, and the

requested assignment date. CIPCO shall not be

obligated to accept any bid that offers to pay less

than the full rate over the remaining term of the

agreement. Any party submitting a bid must satisfy

any applicable requirements of the upstream

pipeline's tariff, including creditworthiness. Upon

the expiration of the thirty (30) day period, any

unassigned capacity shall remain posted on the

electronic bulletin board and available for

Additional Assignment until all such capacity is

assigned, released, or otherwise disposed of.

12.8 Capacity Not Assigned

If CIPCO determines that firm upstream capacity

is not assignable or CIPCO is unable to release

available upstream capacity pursuant to the upstream

pipeline's capacity reallocation program, CIPCO may

file to recover the costs associated with such

stranded upstream capacity as a transition cost

pursuant to Section 31.