Trunkline Gas Company

First Revised Volume No. 1

Effective Date: 10/18/1999, Docket: RP99-483-000, Status: Effective

Second Revised Sheet No. 196 Second Revised Sheet No. 196 : Effective

Superseding: First Revised Sheet No. 196

GENERAL TERMS AND CONDITIONS

(Continued)

9. CAPACITY RELEASE (Continued)

surcharges. In the event of payment default, subject to

Section 16 herein, Trunkline may elect to terminate that

Replacement Shipper's Capacity Release Service Agreement

which shall terminate all service thereunder utilized by the

Replacement Shipper.

(D) Once Replacement Shipper or PRS is notified of a winning bid,

such Replacement Shipper or PRS shall have all the rights and

obligations specified under the Releasing Shipper's Rate

Schedule, the Releasing Shipper's Service Agreement and the

General Terms and Conditions of this Tariff including the

right to release firm capacity pursuant to this Section

unless the conditions prescribed by the Shipper Notice

require otherwise.

(E) Replacement Shipper shall have no Right of First Refusal with

respect to the released capacity, unless such release is

permanent.

9.7 Rights and Obligations of Trunkline

Trunkline shall determine, in its sole discretion, the best bid

based upon the best bid criteria established pursuant to Section

9.2(A)(11) or Section 9.4(H) herein. Trunkline shall have the

right, but not the obligation, to reject, in whole or in part, the

terms of any Shipper Notice or bid which is discriminatory or

conflicts with any order or regulation issued by the FERC, or

provision of the Service Agreement, Rate Schedule or General Terms

and Conditions. Such Shipper Notice shall be rejected in its

entirety unless Shipper, pursuant to Section 9.2(A)(14), permits a

partial rejection. Trunkline shall provide simultaneous

notification to Shipper, through the Messengerþ system, of the

reason(s) for rejecting a release notice with the notice of

rejection. Trunkline shall not have any liability to any Shipper,

Releasing Shipper, Replacement Shipper, bidder or any other party

as a result of Trunkline's performance of its obligations under

its capacity release program, and such Shippers, Releasing

Shippers, Replacement Shippers, and bidders shall indemnify

Trunkline from and against any and all losses, damages, expenses,

claims, suits, actions and proceedings whatsoever threatened,

incurred or initiated as a result of Trunkline's performance

hereunder, except to the extent such loss, damage, expense, claim,

suit, action or proceeding is the result of Trunkline's

negligence, bad faith or willful misconduct.