Pacific Gas Transmission Company

First Revised Volume No. 1-A

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Effective Date: 02/02/1998, Docket: GT98- 17-000, Status: Effective

Second Revised Sheet No. 89 Second Revised Sheet No. 89 : Effective

Superseding: First Revised Sheet No. 89

TRANSPORTATION GENERAL TERMS AND CONDITIONS

(Continued)

28. CAPACITY RELEASE

28.1 Eligibility to Release

Any firm Shipper which contracts for firm transportation

service under Part 284 of the Commission's regulations

(Releasing Shipper) is eligible to release all or part of

its capacity (Parcel) for use by another party

(Replacement Shipper). Any Replacement Shipper which has

previously contracted for a Parcel may also release its

capacity to another party as a secondary release subject

to the terms and conditions described herein.

Upon releasing a Parcel, consistent with the terms and

conditions described herein, all Releasing Shippers shall

remain ultimately liable for all reservation charges

billable for the originally contracted service. The

Releasing Shipper, whether a primary or secondary

capacity holder, must post the capacity it seeks to

release on PG&E GT-NW's Electronic Bulletin Board (EBB)

prior to the close of the Posting Period defined herein.

A Releasing Shipper may release all or a portion of its

capacity for the remainder of the term of its contract

and extinguish its contractual obligations to PG&E GT-NW

with respect to that portion provided that: 1) the

Replacement Shipper for this capacity is creditworthy

pursuant to PG&E GT-NW's credit standards; and 2) that the

rate paid by the Replacement Shipper be no less than the

rate contracted between the Releasing Shipper and PG&E GT-NW

for the maximum volume, for the remaining term of the

contract or the Releasing Shipper's maximum tariff rate.

The release may be structured such that the right of first

refusal may transfer to the Replacement Shipper even if the

release has recall provisions and has been recalled by

the Releasing Shipper at the end of the service

agreement.

(Continued)