CNG Transmission Corporation

Second Revised Volume No. 1

Effective Date: 11/01/1996, Docket: RP96-383-003, Status: Effective

2nd Sub Second Revised Sheet No. 369 2nd Sub Second Revised Sheet No. 369 : Superseded

Superseding: First Revised Sheet No. 369

GENERAL TERMS AND CONDITIONS

Capacity Release

is Pipeline's currently-effective maximum rate for

service applicable to Releasing Customer, plus all

applicable surcharges and transition costs, excluding

any marketing fees. This maximum rate applies

notwithstanding any discounts granted under the

Service Agreement between Releasing Customer and

Pipeline. The posted notice must specify whether the

Releasing Customer will consider bids on a volumetric

basis; if so, the maximum applicable reservation rate

shall be the 100% load factor derivative of

applicable reservation charges, as set forth on Sheet

Nos.32, 33, and 37 of Pipeline's Tariff. The usage

portion of the rate will not be taken into

consideration when determining the "best bid." Unless

Pipeline and Replacement Customer subsequently

negotiate different usage rate components as

permitted by the applicable Rate Schedule,

Replacement Customer shall pay the usage rates

otherwise applicable to Releasing Customer. Where

Releasing Customer is subject to a Negotiated Rate,

the Recourse Rate shall be used for purposes of

bidding under this Section 23.

7. Duration of the release, and any minimum acceptable term,

including the specific starting and ending dates a minimum

term of one day shall apply to releases. Releases may

commence at any time of the month.

8. Whether the release is to be permanent or temporary.

Permanent releases are subject to pregranted abandonment,

as provided under 18 C.F.R. Section 284.221.

9. Criteria for evaluating bids, and for breaking ties among

equivalent bids. If no criteria are specified, Pipelines

default standards shall apply, as described in Section

23.3., below.