Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 07/10/1995, Docket: RP95-244-001, Status: Effective

Substitute Second Revised Sheet No. 240 Substitute Second Revised Sheet No. 240 : Superseded

Superseding: First Revised Sheet No. 240

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

Except as provided in the preceding paragraph, a Replacement

Shipper has the same receipt and delivery point flexibility

rights and restrictions as the Primary Shipper and is subject

to the same creditworthiness requirements. A Releasing

Shipper may not impose additional creditworthiness

requirements. The Replacement Shipper may only reassign the

capacity under this Article 11.

(d) The Primary Shipper, any Subsequent Shipper, and any

Replacement Shipper remain liable to WNG for the reservation

fee, reservation balancing fee, if applicable, and any

reservation fee surcharges under its service agreement and

shall receive a credit for revenues received from the current

Replacement Shipper as provided in Article 11.7 below.

Releasing Shippers utilizing this procedure release WNG from

any liability resulting from the breach by the Replacement

Shipper(s) of any conditions or restrictions specified by the

Releasing Shipper(s).

11.3 Pre-arranged releases

(a) Short Term Releases (31 days or less): WNG will notice

short-term pre-arranged deals for capacity through a posting

on its EBB. Such pre-arranged release of firm capacity need

not comply with the notification, posting, and bidding

requirements of Article 11.4. A firm release under this

paragraph shall be posted on WNG's electronic bulletin board

(EBB) within two business days after the release transaction

commences. Any such release may not be extended to the same

Replacement Shipper within 28 days of the first release,

without being subject to the provisions of Article 11.4.

(b) Long Term Releases (more than 31 days): WNG will notice

long-term pre-arranged deals for capacity through a posting on

its EBB. The Pre-arranged Shipper and parties who wish to bid

for the capacity, with the exception of releases at the

maximum rate, must comply with the posting, bidding, and

matching requirements of Article 11.4.