CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 02/01/1999, Docket: RP97-406-021, Status: Effective

First Revised Sheet No. 375 First Revised Sheet No. 375 : Superseded

Superseding: Sub. Original Sheet No. 375

GENERAL TERMS AND CONDITIONS

Capacity Release

d. In the event of partial payments by

Replacement Customer, funds will first be

used to pay reservation charges and related

surcharges, whether owed to Pipeline or to

Releasing Customer.

3. Refunds will be allocated first to Replacement

Customer, to the extent required to ensure that

Replacement Customer has not paid more than the

just and reasonable rate for service from

Pipeline. To the extent that Pipeline owes refund

amounts attributable to the released transaction

in excess of the amounts refunded to Replacement

Customer, then Pipeline will make such refunds to

Releasing Customer.

C. Upon mutual agreement between Pipeline and Releasing

Customer, Pipeline will not bill Replacement Customer

but will bill Releasing Customer for charges under

this Section, and Releasing Customer may bill

Replacement Customer; provided, however, that: (1)

Releasing Customer must post such arrangement in its

Release Notice; and (2) Releasing Customer is liable

for all charges owed to Pipeline to the extent of its

agreement with Replacement Customer, and Replacement

Customer has no liability to Pipeline for such

charges.

23.5 Replacement Customers.

A. Replacement Customers hold the rights granted by

Releasing Customer for service by Pipeline at Primary

points. Replacement Customers may also use Secondary

Points to the extent such points would otherwise be

available to Releasing Customer. After a permanent

release, Replacement Customer may request Primary

point changes under the applicable procedures of

Pipeline's FERC Gas Tariff. If a release is not

permanent, Replacement Customer may seek to change

Primary points under its Service Agreement, and

thereby permanently alter the applicable Service

Agreement of Releasing Customer, only to the extent

expressly authorized by Releasing Customer in the

posted notice. Requests to change Primary points must

comply with all applicable procedures of Pipeline's

FERC Gas Tariff. In any event, Primary Point changes