Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 02/22/2009, Docket: RP09-245-000, Status: Effective

First Revised Sheet No. 450 First Revised Sheet No. 450

Superseding: Original Sheet No. 450








42.1 Purpose. This section sets forth the provisions under which a shipper ("Releasing

Shipper") which has a currently effective Service Agreement with Seller for firm

transportation service or firm storage service, or both, rendered under Seller's

blanket certificate or Part 284 of the FERC's regulations (excluding Seller's Rate

Schedule FT-G) may release its firm capacity entitlements as described in Section 42.2

and 42.3 below to a third party ("Replacement Shipper").


42.2 Definitions. The definitions of terms applicable to this section are as follows:


(a) Releasable Firm Capacity Entitlements - Firm capacity entitlements as described

in a Releasing Shipper's Service Agreement.


(b) Prearranged Release - Arrangement by a Releasing Shipper for a specific

Replacement Shipper to obtain the Releasing Shipper's released capacity.

Replacement Shipper initiates confirmations of prearranged deals electronically.

If capacity is awarded to prearranged bid, execution of Service Agreement as

described in Section 42.8 shall constitute such confirmation.


(c) Recall Rights - Conditions under which the right to the released capacity reverts

from the last Replacement Shipper to a Releasing Shipper who specified such

conditions. Such conditions must be objectively stated, non-discriminatory and

applicable to all potential Replacement Shippers.


(d) Reput Rights - An indication, specified at the time of the deal, whether

Releasing Shipper may reput capacity to the Replacement Shipper after a recall.


(e) Best Bid - Potential Replacement Shippers who qualify for bidding pursuant to

Section 42.7(b) hereunder ("bidders") shall be allowed to submit bids for

capacity. Within 1 hour after the close of the bidding period, Seller shall

determine the Best Bid based on the Releasing Shipper's objective criteria and

shall confirm same with the Releasing Shipper. If the Releasing Shipper does not

provide the objective criteria to be used for selecting the Best Bid, then

Seller's objective criteria for Best Bid shall be used as set forth in Section

42.11(a). If the Releasing Shipper does not provide a tie-breaking methodology,

then Seller's tie-breaking methodology shall be used as set forth in Section

42.11(c). If capacity remains after award of the Best Bid, Seller shall award

remaining capacity according to the criteria in Section 42.11(b). The terms of

the winning bid shall be posted by Seller on 1Line and such posting shall include

the following information:


(i) The identity of the Releasing Shipper.

(ii) The identity of the Replacement Shipper.

(iii) The term of the release.

(iv) The reservation or volumetric rate charged for the capacity.

(v) All conditions of release objectively stated including, but not limited

to, any recall conditions.

(vi) The applicable Rate Schedule and specific quantity of capacity released

and, if firm transportation capacity, the associated points between which

capacity has been released.

(vii) Whether the release is to an asset manager as defined in Section

284.8(h)(3) of the Commission's Regulations and, if so, the asset

manager's obligation to deliver gas to, or purchase gas from, the

releasing shipper including the volumetric level of the obligation and

the time periods the obligation is in effect.

(viii) Whether the release is to a marketer participating in a state-regulated

retail access program as defined in Section 284.8(h)(4) of the

Commission's Regulations.