August 25, 2003

Date: August 10, 2007

To: All Transcontinental Gas Pipe Line Corporation (Transco)

Potential Shippers, Customers, and Interested Parties

Re: Open Season for Pascagoula Expansion Project

Transcontinental Gas Pipe Line Corporation (“Transco”) announces an open season for year-round firm transportation service of 467,390 dekatherms per day to be made available on Transco’s system from a proposed interconnection with the Gulf LNG Clean Energy import terminal facilities near Pascagoula, Mississippi to Transco’s Station 85 pool near Butler, Alabama. The transportation will be made available through the combination of a new pipeline connecting the import terminal facilities to the Mobile Bay Lateral (referred to as the “Pascagoula Supply Line”) and existing firm transportation capacity on Transco’s Mobile Bay Lateral (collectively referred to as the “Pascagoula Expansion Project”). The Pascagoula Expansion Project will provide access to Transco’s Station 85 pool for re-gasified LNG from the proposed Gulf LNG Clean Energy import terminal.

The Pascagoula Expansion Project will provide firm transportation service in Transco’s Rate Zone 4A from the proposed Gulf LNG Clean Energy import terminal facilities to the Mobile Bay Lateral (interconnecting approximately 13 miles downstream of Station 82), and from that interconnection point to Transco’s Station 85 pool. Shippers will have secondary rights to points located in Zone 4A upstream of such interconnection in accordance with Transco’s FERC Gas Tariff. The proposed in-service date for the Pascagoula Expansion Project is October 1, 2011.

The open season will commence at 9:00 a.m. CDT on August 10, 2007 and end at 3:00 p.m. CDT on September 7, 2007.

Transco will provide the Precedent Agreement for firm transportation service under the project upon request to any shipper interested in participating in the open season. Any shipper desiring firm transportation service under the project must deliver to Transco the draft Precedent Agreement in a form acceptable to the shipper and the information requested in the attached Transportation Service Request form before the close of the open season. While Transco will consider reasonable changes to the Precedent Agreement, the requesting shipper’s request for service will be subject to rejection by Transco if such shipper makes material changes to the Precedent Agreement that are not agreeable to Transco. Transco will review any such changes with the shipper following the close of the open season. As further described below, the Precedent Agreement must be executed and delivered by the shipper by October 5, 2007.

In addition to the foregoing requirements, Transco will consider only those requests for service under the Pascagoula Expansion Project that meet all of the following criteria:

· The shipper must provide evidence to demonstrate creditworthiness;

· The requested firm transportation must be for a primary term of at least 20 years; and

· The requested firm transportation path must be from the proposed interconnection with the Gulf LNG Clean Energy import terminal facilities near Pascagoula, Mississippi to Transco’s Station 85 pool near Butler, Alabama.

The firm transportation service will be provided under Transco’s Rate Schedule FT and Part 284(G) of the Federal Energy Regulatory Commission’s (“FERC”) regulations.

The maximum firm transportation rate for the Pascagoula Expansion Project will be the sum of the maximum incremental cost of service rate for the Pascagoula Supply Line and the maximum firm transportation rate for Zone 4A to 4A, as further described below.

Transco estimates that the maximum daily reservation rate for the Pascagoula Supply Line will be approximately $0.051 per dekatherm, based on Transco’s Docket No. RP06-569 general rate filing factors. (The incremental cost of service rate for the Pascagoula Supply Line is an estimate only and is subject to change based upon the final project costs, the level of capacity subscriptions and other cost related factors.) Transco’s current maximum firm transportation daily reservation rate for Zone 4A to 4A is $0.09725. Therefore, the maximum daily reservation rate applicable to the firm transportation service under the Pascagoula Expansion Project is estimated to be approximately $0.148. Transco will entertain negotiated reservation rate bids that are less than such maximum reservation rate.

In addition to the reservation rate, Transco will charge the maximum commodity charges, reservation and commodity surcharges, fuel and electric power applicable to such firm transportation service under Rate Schedule FT, all as amended from time to time.

Receipt by Transco during the open season period of the information requested in the attached Transportation Service Request form, the draft Precedent Agreement (in a form acceptable to the shipper), and the necessary creditworthiness information shall constitute a Complete Request and shall be considered a binding offer by the party submitting the request.

Awarding of Capacity

Following Transco’s evaluation of the submitted requests, the firm transportation capacity shall be awarded in the following manner to those shipper(s) submitting Complete Requests and whose Precedent Agreements are acceptable to Transco:

If the Complete Requests acceptable to Transco exceed 467,390 dekatherms per day, then Transco shall accept the bid with the highest reservation rate. In the event the total quantity requested in such bid is less than 467,390 dekatherms, then the bid with the next highest reservation rate shall be accepted for a quantity totaling the lesser of the requested capacity or the balance of the remaining capacity for the Pascagoula Expansion Project. If the remaining capacity for the Pascagoula Expansion Project is less than that bid’s minimum acceptable quantity then the bid with the next highest reservation rate shall be accepted. The allocation process shall continue until all of the available capacity has been awarded or there are no remaining bids for the capacity.

In the event Transco receives two or more best bids with the same reservation rate, then Transco will allocate the available capacity among the requesting shippers on a pro rata basis based on the total quantity requested by each shipper.

Upon completion of Transco’s evaluation of the Complete Requests and any allocation of capacity, Transco will promptly provide the shippers submitting the winning bids with execution copies of the binding Precedent Agreement for firm transportation service under the Pascagoula Expansion Project. Such shippers must execute and deliver to Transco the execution copies of the Precedent Agreement no later than 3:00 P.M. CST on October 5, 2007.

Transco reserves the right to reject any and all bids if the requested volumes, rates and/or terms are unacceptable to Transco.

Associated Third Party Open Season

The Pascagoula Supply Line (the pipeline connecting the Gulf LNG Clean Energy import terminal facilities to the Mobile Bay Lateral) is being jointly developed by Transco and Florida Gas Transmission Company, LLC (FGT), with each party holding an undivided interest in the proposed pipeline. Transco’s capacity in the pipeline (totaling 467,390 dekatherms) is being offered in this open season in conjunction with existing firm capacity on Transco’s Mobile Bay Lateral. FGT’s capacity on the Pascagoula Supply Line is being offered by FGT.

If you have any questions regarding this open season, please contact Gary Duvall at (713) 215-2589 or Joan Harris at (713) 215-2904.

Transcontinental Gas Pipe Line Corporation

Open Season – Pascagoula Expansion Project

Transportation Service Request

Send to: Transcontinental Gas Pipe Line Corporation

2800 Post Oak Blvd.

P. O. Box 1396

Houston, Texas 77251-1396

Attn: Customer Services

Facsimile: (713) 215-4608

(1) Shipper's Name and Address: (Note: Shipper is the party proposing to execute the Service Agreement with Transco)

_______________________________________________________________________________

(2) Total Quantity requested (dt/d): _________________________

Minimum acceptable quantity (dt/d): _______________________

(3) Total daily reservation rate bid for firm transportation service from the Point of Receipt to the Point of Delivery. Please complete one of the following:

¨ Maximum Applicable Tariff Rate

-OR-

¨ Negotiated daily reservation rate of ___________ dt/d.

Transco reserves the right to reject any requests for service bidding a daily reservation rate less than $0.148 (the sum of the estimated maximum daily reservation rate for the Pascagoula Supply Line plus Transco’s applicable Zone 4A to 4A maximum daily reservation rate).

(4) Point of Receipt: Proposed interconnection between Transco and Gulf LNG Clean Energy import terminal facilities.

Point of Delivery: Transco’s Station 85 pool.

(5) Term: Shipper requests a Primary Contract Term of _______ years and ______month(s). Any requests for service with a primary term shorter than twenty (20) years shall be rejected by Transco.

(6) The specific affiliation of the Shipper with Transco, and the extent of Transco's affiliation, if any, with the entity to be provided transportation service:__________________________

(7) Identity of Shipper (Local Distribution Company, Intrastate Pipeline, Hinshaw Pipeline, Interstate Pipeline, Marketer, Producer, End User, Other):_______________________________

(8) Credit Evaluation: Upon request by Transco shipper must provide evidence to demonstrate creditworthiness.

(9) Shipper hereby certifies that it has title to the gas to be transported or the right to acquire title to such gas and has entered into or will enter into all necessary arrangements to ensure that all upstream and downstream transportation will be in place prior to commencement of service.

SHIPPER UNDERSTANDS AND AGREES THAT THIS REQUEST CONSTITUTES A BINDING OFFER TO TRANSCO WHICH MAY BE ACCEPTED OR REJECTED BY TRANSCO.

THIS BINDING TRANSPORTATION SERVICE REQUEST IS HEREBY SUBMITTED:

By:_____________________________________________________________

Title:___________________________________________________________

Company:_______________________________________________________

Telephone Number:_______________________________________________

Date:___________________________________________________________