U-T Offshore System, L.L.C.

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-146-001, Status: Effective

Second Revised Sheet No. 59 Second Revised Sheet No. 59 : Superseded

Superseding: First Revised Sheet No. 59







17.2 Limitations on Releases. Any proposed release of capacity under this Section

17 shall be subject to the following limitations:


(a) The Capacity Release timeline is applicable to all parties involved in the

Capacity Release process; however, it is only applicable if (1) all

information provided by the parties to the transaction is valid and the

Replacement Shipper has been determined to be creditworthy, in accordance

with Sections 2.2(k) and 5, hereof, before the capacity release bid is

tendered and (2) there are no special terms or conditions of the release.


(b) Period of Release. Any proposed release of capacity must be for a period

of no less than one Day, as defined in subsection 1.5 of the General Terms

and Conditions, and no more than the remaining primary term of the

Transportation Agreement between the Releasing Shipper and U-TOS.


(c) Volume of Release. Any proposed release of capacity must be in an amount

of no less than 100 Dth at any specific receipt point, and no more than

the Releasing Shipper is entitled to, by receipt point, delivery point,

and in total, under its Transportation Agreement with U-TOS.


(d) Maximum Reservation Charge. A Releasing Shipper may not specify a

reservation charge for the released capacity that exceeds the maximum

reservation charge for the Releasing Shipper stated on the then-effective

Sheet No. 4 of this tariff. A Releasing Shipper may specify a volumetric

reservation charge for the released capacity provided that such charge

does not exceed the 100 percent (100%) load factor equivalent of the

maximum reservation charge set forth for the Releasing Shipper on the

then-effective Sheet No. 4 of this tariff.


(e) Other Terms Or Conditions. A Releasing Shipper may not specify any terms

or conditions for the release that conflict with the terms and conditions

of: (1) the Releasing Shipper's Rate Schedule FT Transportation Agreement

with U-TOS; or (2) this tariff.


17.3 Communications With U-TOS. Any communication with U-TOS under this Section 17,

including any Release Proposal under subsection 17.4 or Qualified Bid under

subsection 17.6, must be addressed to the following official:


U-T Offshore System

c/o ANR Pipeline Company, Operator

Attn: Manager, Business Operations

500 Renaissance Center

Detroit, Michigan 48243


17.4 Making the Release Proposal. Any Releasing Shipper that wants to make a

proposal to release firm capacity ("Release Proposal") must inform U-TOS, by

mail, facsimile, or U-TOS' Electronic Delivery Mechanism, of the specific terms

and conditions of the Release Proposal. All such terms and conditions must be

objectively stated, applicable to all potential bidders, and non-discriminatory.

A Releasing Shipper that has entered into a provisional agreement on the terms

and conditions of a capacity release ("Prearranged Transaction") with another

person that is prequalified as a Replacement Shipper under subsection 17.11 of

this Section 17 ("Prearranged Shipper") must include the information concerning

the Prearranged Transaction specified below. Any Release Proposal must be made

on the U-TOS Release Proposal Form, as set forth on Sheet Nos. 122-126 of this

tariff, and must include the following information: