Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-165-001, Status: Effective

Third Revised Sheet No. 89 Third Revised Sheet No. 89 : Superseded

Superseding: SECOND REVISED SHEET NO. 89

GENERAL TERMS AND CONDITIONS (continued)

recall or reput of the capacity;

(g) whether contingent bids will be accepted for evaluation

and, if so, the terms and conditions on which the

contingent bids will be evaluated including, among

other things; (1) whether the contingency can extend

beyond the Bidding period and (2) whether, and for what

time period, the next highest bidder will be obligated

to acquire the capacity should the winning contingent

bidder exercise its option not to take the capacity;

(h) whether the release is contingent on the Releasing

Shipper's ability to release associated capacity on

another pipeline and, if so, all terms and conditions

associated with such contingency;

(i) whether bids based on a one part volumetric rate will

be accepted and any special conditions associated with

release on a volumetric basis including any minimum

volumetric commitment, expressed as a quantity or as a

percentage. Provided, that the maximum rate for the

release, including any surcharges, shall not be more

than Transporter's maximum demand rate for service

under Rate Schedule FT, including any applicable

surcharges, computed using a 100% load factor basis

(which is equal to Transporter's applicable maximum IT

rate as stated on the currently effective Sheet No.4);

(j) any objective, non-discriminatory bid evaluation method

which the Releasing Shipper desires to utilize to

determine the award of released transportation rights;

(k) the manner in which any refunds in rates and charges

ordered by FERC with respect to the released capacity

will be distributed by Releasing Shipper to Replacement

Shipper;

(l) an irrevocable statement that after the close of the

applicable Bidding Period, the Releasing Shipper shall

release its transportation rights on the terms set

forth in its Release Request if all such terms are

accepted by a Bidder and such Bidder otherwise

qualifies for such transportation service under

Transporter's Tariff;