Offers For Relinquishment of Firm Capacity

Let me know if you guys are receiving the Transco postings.

---------------------- Forwarded by Chris Germany/HOU/ECT on 03/21/2001 07:36
AM ---------------------------

"CustomerNotices, WGPHOU" <WGPHOU.CustomerNotices@Williams.com< on 03/20/2001
03:28:51 PM
To: "Alatorre, Hector" <Hector.X.Alatorre@Williams.com<, "Alvarado, Orlando"
<Orlando.Alvarado@Williams.com<, "Ambler, Margie"
<Margie.A.Ambler@Williams.com<, "Anderson, Toi"
<Toi.L.Anderson@Williams.com<, "Avioli, James"
<James.P.Avioli@Williams.com<, "Blodgett, Kerry"
<Kerry.D.Blodgett@Williams.com<, "Bowman, Terri"
<Terri.K.Bowman@Williams.com<, "Buhrke, Cathy"
<Cathy.L.Buhrke@Williams.com<, "Catlett, Laurie"
<Laurie.E.Catlett@Williams.com<, "Conley, Allan"
<Allan.A.Conley@Williams.com<, "Cordray, Stan"
<Stan.L.Cordray@Williams.com<, "Cortez, Diama"
<Diama.M.Cortez@Williams.com<, "Cox, Ann" <Ann.M.Cox@Williams.com<,
"Cunningham, Larry" <Larry.G.Cunningham@Williams.com<, "Doyle, Ronald"
<Ronald.C.Doyle@Williams.com<, "Eaton, John" <John.W.Eaton@Williams.com<,
"Egner, Paul" <Paul.F.Egner@Williams.com<, "Fitch, Terry"
<Terry.C.Fitch@Williams.com<, "Flores, Gloria"
<Gloria.A.Flores@Williams.com<, "Gallerano, John"
<John.Gallerano@Williams.com<, "Gensler, Quentin"
<Quentin.G.Gensler@Williams.com<, "Hargrove, Nancy"
<Nancy.J.Hargrove@Williams.com<, "Heiser, Suzanne"
<Suzanne.J.Heiser@Williams.com<, "Helburg, Charles"
<Charles.J.Helburg@Williams.com<, "Higginbotham, Keith"
<Keith.A.Higginbotham@Williams.com<, "Hungate, Cynthia"
<Cynthia.L.Hungate@Williams.com<, "Immer, Ingrid"
<Ingrid.Immer@Williams.com<, "Kelley, James" <James.A.Kelley@Williams.com<,
"Kelley, Nancy" <Nancy.D.Kelley@Williams.com<, "King, Mable"
<Mable.D.King@Williams.com<, "Kleiner, Margaret"
<Margaret.E.Kleiner@Williams.com<, "Laird, Mary"
<Mary.A.Laird@Williams.com<, "Laughlin, Helen"
<Helen.M.Laughlin@Williams.com<, "Laurel, Liz" <Liz.X.Laurel@Williams.com<,
"Lindloff, Monty" <Monty.R.Lindloff@Williams.com<, "Loggins, Kenneth"
<Kenneth.E.Loggins@Williams.com<, "Lowrey, Roseanne"
<Roseanne.A.Lowrey@Williams.com<, "McCauley, Laurie"
<Laurie.L.McCauley@Williams.com<, "Mingen, Michele"
<Michele.D.Mingen@Williams.com<, "Monley, John"
<John.M.Monley@Williams.com<, "Mott, Louella" <Loella.G.Mott@Williams.com<,
"Muenster, Kay" <Kay.Muenster@Williams.com<, "Nguyen, Michelle"
<Michelle.M.Nguyen@Williams.com<, "Payne, Leon" <Leon.M.Payne@Williams.com<,
"Prevott, Rose" <Rose.M.Prevott@Williams.com<, "Prodoehl, Paul"
<Paul.J.Prodoehl@Williams.com<, "Ramos, J Linda"
<J.Linda.Ramos@Williams.com<, "Ramos, Mary" <Mary.E.Ramos@Williams.com<,
"Roberts, Jan" <Jan.Roberts@Williams.com<, "Robertson, Constance"
<Constance.A.Robertson@Williams.com<, "Rush, Russell"
<Russell.H.Rush@Williams.com<, "Scott, Mark" <Mark.A.Scott@Williams.com<,
"Shaull, Barbara" <Barbara.G.Shaull@Williams.com<, "Silvas, Elizabeth"
<Elizabeth.V.Silvas@Williams.com<, "Sirois, Jeannette"
<Jeannette.Sirois@Williams.com<, "Smith, Elsie"
<Elsie.F.Smith@Williams.com<, "Swanson, Debbe"
<Debbe.T.Swanson@Williams.com<, "Taylor, Charles"
<Charles.A.Taylor@Williams.com<, "Wahlstrom, Scottie"
<Scottie.J.Wahlstrom@Williams.com<, "Walleck, Lynn"
<Lynn.A.Walleck@Williams.com<, "Watson-Combre, Cassandra"
<Cassandra.X.Watson-Combre@Williams.com<
cc:
Subject: Offers For Relinquishment of Firm Capacity

To: Existing Firm Transportation Shippers

Re: Offers for Permanent Relinquishment of Firm Capacity in
Conjunction with the Momentum Expansion Project

As a part of the Momentum Expansion Project ("Momentum"),
Transcontinental Gas Pipe Line Corporation ("Transco") is
soliciting offers for the permanent relinquishment of firm
transportation capacity on the Transco system from Station 65 in
Zone 3 or mainline receipt points in Zone 4 to delivery points
in Zone 4 or Zone 5 at or upstream of Station 165. Subject to
certain conditions, Transco intends to combine such relinquished
capacity with newly constructed capacity in order to render
service under Momentum. Offers for capacity relinquishment may
be made only for existing transportation services provided under
Part 284(G) of the FERC's regulations.

Valid offers must meet the following criteria:

1. The capacity offered must result in a reduction of the
facilities otherwise required to serve the subscribing
shippers under Momentum;

2. Inclusion of relinquished capacity in the project must result
in a lower cost of service for the project than if additional
facilities were constructed;

3. The remaining contract term for the relinquished capacity must
not extend beyond the 15-year primary contract term of the
Momentum service agreements;

4. Offers for permanent relinquishment will not be accepted from
shippers who nominate for service under Momentum;

5. Offers must identify the specific contract(s), MDQ, receipt
and delivery point(s) in each contract at which delivery point
entitlements (DPEs) will be reduced as a result of the
relinquishment of firm capacity to those points. Shippers
will not be permitted to relinquish a geographic portion of
any contract; and

6. Offers must be unconditional, binding and irrevocable.

Such offers must be received by Transco no later than 5:00 PM
CST on Friday, March 30, 2001. After receipt of offers to
relinquish capacity, Transco will finalize the design of the
facilities to be constructed to render service under Momentum.

Parties that submit offers to relinquish capacity will be
notified as to whether the offer complied with the
specifications set forth herein and whether the capacity will be
accepted and utilized to render service under Momentum. If more
capacity is offered than is needed under Momentum, preference
will be given to those offers that reduce the cost of Momentum
to the greatest degree. In the event of a tie, preference will
next be given to those offers that have the shortest remaining
term for the capacity relinquished.

Shippers with relinquished capacity that is included in Momentum
will retain all rights and responsibilities set forth in their
Service Agreement(s), Rate Schedule FT and the General Terms and
Conditions of Transco's FERC Gas Tariff until Momentum firm
transportation service commences through the relinquished
capacity. The relinquishing shipper's service agreements will
be terminated or reduced effective on that day. Transco's
acceptance of relinquished capacity is and will be subject to
the following:

1. Execution and delivery by the shipper to Transco of an
agreement to permanently relinquish such firm transportation
capacity (such agreement to be provided by Transco);

2. Execution and delivery of an amendment to the shipper's firm
transportation contract reflecting any modifications resulting
from the relinquishment of a portion of the service related to
such capacity, if applicable;

3. Execution and delivery of firm service agreements by shippers
subscribing to all capacity to be made available under
Momentum;

4. Shippers relinquishing capacity will file in support of
Transco's applications for a certificate of public convenience
and necessity authorizing Momentum;

5. Receipt of a FERC certificate authorizing the proposed
Momentum facilities and service (including approval of
shipper's capacity relinquishment) in a form acceptable to
Transco in its sole opinion; and

6. Placing the entire Momentum project into service. In the
event that Momentum does not go forward for any reason,
including, without limitation, the FERC authorizations being
granted in a form unacceptable to Transco, the capacity
relinquishment shall not be effectuated and all related
agreements shall be null and void.

Parties desiring more information regarding this announcement
should contact Helen Laughlin at 713/215-3773 or Orlando
Alvarado at 713/215-3378.

- C.DTF