Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-165-003, Status: Effective

Sub. First Revised Sheet No. 95 Sub. First Revised Sheet No. 95 : Superseded

Superseding: FIRST SHEET NO. 95

GENERAL TERMS AND CONDITIONS (continued)

basis for Bidders if the Releasing Shipper provides

Transporter with a guarantee satisfactory to

Transporter of all financial obligations of the

Replacement Shipper under its Released Transportation

Service Contract prior to the commencement of service

to the Replacement Shipper.

(b) Bidding will be an iterative process in that a Bidder

may submit any number of bids during the Bidding Period

for such rights; provided that each new submission of

a bid for such rights by such Bidder shall constitute

the withdrawal of any immediately proceeding bid by

such Bidder for such released transportation rights.

The purpose of this provision is to ensure that a

Bidder may not have more than one bid in contention at

the same time for such transportation rights. If a

Bidder withdraws its bid by submitting a new bid, such

new bid must be at a higher rate than such Bidder's

immediately proceeding rate. Bids are binding until

written or electronic notice of withdrawal is received

by Transporter or the capacity release service

provider. A Bidder retains the right to withdraw its

bid until the close of the Bidding Period, however, a

bid cannot be withdrawn after the bid period ends.

(c) Bids shall contain the following information:

i) the identity of the Bidder;

ii) Bidder's Released Transportation Service

Contract number.

iii) the Release Request number to which the Bid

relates or numbers, in the case where

capacity packages posted by two or more

different release Shippers are acceptable to

a bidder.

iv) the bid rate(s) expressed as a dollar amount

or as a percentage, that the Bidder is

willing to pay for the released

transportation rights, which must be no less

than any minimum bid rate(s) specified in

the Release Request and which, in any event,

must be no less than Transporter's currently

effective maximum Rate Schedule FT commodity

rate, including any applicable surcharges;