Transwestern Pipeline Company

Second Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-360-001, Status: Effective

Tenth Revised Sheet No. 95B.01 Tenth Revised Sheet No. 95B.01 : Effective

Superseding: Ninth Revised Sheet No. 95B.01

GENERAL TERMS AND CONDITIONS

(continued)

c) Any Releasing Shipper offering capacity for Capacity Release will, by electronically posting

capacity or by having Transporter electronically post capacity, automatically enter into an

amendment to Shipper's underlying contract, subject to procedures set out in Section 18.6 of

these General Terms and Conditions. Such amendment shall take effect only upon the

confirmation of a prearranged transaction or upon the award of such capacity.

d) The information set forth in the Offer to Release Capacity shall be posted on Transporter's

Internet Website by the Releasing Shipper, or by Transporter if requested by Releasing

Shipper. Transporter shall only post completed Offers to Release Capacity. Such information

shall be posted in accordance with the minimum time periods set forth in Section 30.5. With

respect to Offers to be posted by Transporter, Transporter shall post any such Offer upon

receipt, unless the Releasing Shipper requests otherwise. The Releasing Shipper may request a

posting time consistent with the time lines set forth in Section 30.5. A Releasing Shipper

shall separately provide to Transporter any minimum conditions that are

not to be disclosed in the Offer to Release Capacity.

e) Transporter shall post on its Internet Website the following information in the Offer to

Release Capacity:

1) the maximum reservation rate (including demand-type

surcharges) specifically applicable to the shipper's capacity being released,

2) the date and time by which bids must be submitted under the

applicable allocation method,

3) the date and time the notice is posted on the Internet Website

and

4) latest date and time capacity will be awarded in accordance

with the time lines set forth in this Section 30.

Transwestern will accept and process uploads of capacity release offers from releasing

shipper(s) (or its authorized third party service provider), provided the offer is received by

Transwestern at its designated site no later than fifteen (15) minutes prior to the respective

deadline in NAESB Standards (posting deadline for an Offer to Release Capacity). Such

received offer, if determined to be valid, should be posted as an Offer and should be

available for bidding in accordance with Section 30.5.

f) Withdrawal of Offer to Release Capacity: The Releasing Shipper may withdraw or cause

Transporter to withdraw the Offer to Release Capacity up to the close of the applicable bid

submittal period; provided, however, withdrawal will be allowed only if the Releasing Shipper

has an unanticipated requirement for the capacity and no minimum bid has been made. An Offer

to Release Capacity is binding until written or electronic notice of withdrawal is received by

Transporter.

g) Recall of Temporarily Released Capacity: A Releasing Shipper has the right to utilize the

standard tariff method as defined below or a Releasing Shipper has the right to define the

condition(s) precedent that will result in a recall and reput (return to Replacement Shipper)

of capacity subject to a Temporary Release by specifying such conditions in the Offer to

Release Capacity. The Releasing Shipper has no right to recall the released capacity, other

than any rights set forth in the Offer to Release Capacity. This released capacity is

recallable in whole or in part at the discretion of the Releasing Shipper. It shall be the

Replacement Shipper's responsibility to verify if the Releasing Shipper is adhering to the

conditions in the Offer to Release Capacity. At the end of the recall period, the capacity

recalled reverts (reputs) back to the Replacement Shipper in whole or in part. The terms and

conditions of any recall rights shall not be inconsistent with the terms and conditions of the

Releasing Shipper's existing service agreement with Transporter nor the provisions of

Transporter's FERC Gas Tariff. Transporter shall continue to apply all tariff provisions to

the Shipper of record until notified of a recall or notified of the termination of such recall

and shall change the Shipper of record on a prospective basis only after proper notification of

a change. Transporter has the right to rely on a Releasing Shipper's notice and a Releasing

Shipper shall defend and indemnify Transporter against any claims, losses, liabilities, or

expense (including reasonable attorney's fees) resulting from claims by any Replacement Shipper

that released capacity was not recalled in accordance with the recall rights specified in the

Offer to Release Capacity.