CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 01/05/1998, Docket: RP97-406-005, Status: Effective

Sub. Third Revised Sheet No. 373 Sub. Third Revised Sheet No. 373 : Superseded

Superseding: Second Revised Sheet No. 373

GENERAL TERMS AND CONDITIONS

Capacity Release

F. A posted offer of release shall expire without

award if Pipeline is unable to contract with a

bidder before the commencement of the term for the

offered capacity.

23.4 Contracting.

A. Pipeline must contract directly with the bidders

who make the best bids, as determined above.

Subject to agreement by the winning bidders to pay

the maximum applicable usage and fuel charges,

Pipeline must accept the bids and contract to

provide the released capacity to the winning

bidders, by executing the winning bidders' Bid

Agreements upon award of the winning bids. Such

executed Bid Agreement shall become an Exhibit to

the Capacity Release Agreement between each winning

bidder, as Replacement Customer, and Pipeline.

Replacement Customer, like any other Customer,

shall be subject to all applicable provisions of

Pipeline's FERC Gas Tariff.

B. Unless Pipeline expressly agrees otherwise,

Releasing Customer's Service Agreement with

Pipeline shall remain in effect until the normal

expiration of the contract term, notwithstanding

any capacity release transaction.

1. Releasing Customer shall remain liable on its

contract with Pipeline, and shall pay all

applicable reservation charges, and related

surcharges and interest, for released

capacity, directly to Pipeline; provided,

however, that Pipeline and Customer may, in

connection with their agreement to a

Negotiated Rate, agree upon Releasing Customer

payment obligations and procedures and

crediting mechanisms in the event of a

capacity release that vary from or are in

addition to those set forth herein. The

provisions of this Section 23.4.B.1. do not

authorize Pipeline to negotiate terms and

conditions of service. In the case of

permanent releases, Pipeline will not

unreasonably refuse