Alabama-Tennessee Natural Gas Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 99 Second Revised Sheet No. 99 : Superseded

Superseding: FIRST REVISED SHEET NO. 99

GENERAL TERMS AND CONDITIONS (continued)

(h) If multiple Bidders meeting the minimum conditions

request less than the total available capacity,

then Transporter, subject to any Prearranged

Replacement Shipper's exercise of its right of

first refusal (matching) as set forth above, shall

award capacity, best bid first, until all offered

capacity is awarded.

(i) For informational purposes only, Transporter shall

post on its EBB system the terms of the successful

bid within forty-eight (48) hours of the awarding

of such winning bid.

(j) If elected by the Releasing Shipper then prior to

the commencement of service pursuant to any Release

Request, the Releasing Shipper, Transporter and the

Replacement Shipper (which shall include a

Prearranged Replacement Shipper, if any) shall

enter into a three-party contract for the released

capacity in the form set forth beginning at Sheet

No. 221 of this Tariff which shall incorporate an

Exhibit which states, among other things, all the

terms of the successful bid ("Released

Transportation Service Contract").

(k) The Replacement Shipper shall submit to

Transporter, in accord with Section 3.1(f) of the

applicable Rate Schedule of this Tariff, including

any applicable surcharges, a check in an amount

equal to the lesser of (1) $10,000, (2) the total

reservation charges under its Released

Transportation Service Contract applicable to the

released service for the lesser of a three month

period or the term of the Contract, or (3) if the

release is based on a volumetric rate, the

volumetric rate less the usage portion of that

rate, multiplied by the total capacity to be

released, multiplied by the lesser of a three month

period or the term of the Contract. The applicable

prepayment amount shall be credited against the

Replacement Shipper's first month's invoice.