Williams Natural Gas Company

Second Revised Volume No. 1

Effective Date: 05/01/1997, Docket: RP97- 67-002, Status: Effective

Second Revised Sheet No. 241 Second Revised Sheet No. 241 : Superseded

Superseding: First Revised Sheet No. 241

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

11.4 Procedure

(a) Bids and offers must be complete before being posted. Only

posted offers and bids will be available electronically.

Completed offers for release and bids, including pre-arranged

releases, shall be posted upon receipt, unless Releasing

Shipper requests otherwise. Releasing Shippers may require a

posting time provided such posting time comports with the

standard time line set forth below. The Capacity Release time

line is applicable to all parties involved in the Capacity

Release process; however, it is only applicable if (1) all

information provided by the parties to the transaction is

valid and the Replacement Shipper has been determined to be

credit worthy before the capacity release bid is tendered; and

(2) there are no special terms or conditions of the release.

A Shipper desiring to release firm capacity for less than five

months, including pre-arranged releases at less than maximum

rates, must tender an offer to release capacity by 1:00 p.m.

CCT on the day before nominations are due. A Shipper desiring

to release firm capacity for five months or longer, including

pre-arranged releases at less than maximum rates, must tender

an offer to release capacity by 1:00 p.m. CCT four business

days before award for long-term releases.

After posting of the offer, there will be an open season

during which WNG will receive open bids for the released

capacity. The open season will end no later than 2:00 p.m.

CCT on the day before nominations are due. The evaluation

period begins at 2:00 p.m. CCT during which contingency is

eliminated, determination of best bid is made, and ties are

broken; evaluation period ends at 3:00 p.m. CCT. The match or

award is communicated by 3:00 p.m. CCT; match response by 4:00

p.m. CCT; award posting by 5:00 p.m. CCT; posting of

pre-arranged deals not subject to bid by 9:00 a.m. CCT the day

of nominations; contract tendered with the contract number by

10:00 a.m. CCT; contract executed; nominations possible for

next day gas flow.

There will be no extensions of the original bid period or the

pre-arranged deal match period without posting a new release.