NorAm Gas Transmission Company

Fourth Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

First Revised Sheet No. 282 First Revised Sheet No. 282 : Superseded

Superseding: Original Sheet No. 282

GENERAL TERMS AND CONDITIONS

(continued)

on a volumetric rate basis, Transporter shall

convert the applicable maximum reservation or

demand charge component to a unit or

volumetric rate using an assumed 100% load

factor. Such converted maximum rate for

volumetric bid purposes, as in effect from

time to time, shall be set forth in

Transporter's Statement of Effective Rates

and Charges for Transportation of Gas

contained in this Tariff. The usage or

commodity charge component to be paid by the

replacement Shipper shall not be subject to

the bidding process and the releasing Shipper

shall have no right to determine the level of

such payment.

19.6 Qualification of Prospective Replacement Shipper.

A prospective replacement Shipper must satisfy all

requirements of the applicable Rate Schedule and

the General Terms and Conditions of this Tariff.

Prior to submitting a bid pursuant to this

section, a bidder must pre-qualify as a

prospective replacement Shipper by submitting a

credit application as provided for in Section 14.5

of these General Terms and Conditions specifying

that the submission is for the purpose of pre-

qualifying to submit bids on released capacity.

Transporter will apply its creditworthiness

criteria to assess the submission. Additionally,

prior to submitting a bid, a bidder must execute,

or have executed and in effect, a Master Capacity

Release Service Agreement. For purposes of this

Tariff, replacement Shipper's Master Capacity

Release Service Agreement and Addenda thereto

shall, together, constitute and be referred to as

its Service Agreement. Upon the implementation of

the Form of Master Capacity Release Service

Agreement and Addendum, Transporter shall submit

to existing replacement Shippers for execution,

duplicate originals of a Master Capacity Release

Service Agreement and/or Addend(um)(a), as

appropriate. Such Shippers will have thirty (30)

days to execute and return such agreements.

19.7 Nominations. Following its selection, execution of

an Addendum to its Master Capacity Release Service

Agreement and compliance with other applicable