FLORIDA GAS TRANSMISSION COMPANY, LLC EAST TO WEST PROJECT BINDING OPEN SEASON Florida Gas Transmission Company, LLC (“FGT”) will conduct a binding Open Season for its proposed East-West Project (the “Project”) beginning at 9:00 a.m. Central Time (“CT”) on December 22, 2015 and ending at 3:00 p.m. CT on January 20, 2016. Project Description FGT is proposing a change in the operation to a portion of the Western Division of its pipeline system. More particularly, FGT plans to modify and rearrange certain facilities to be bidirectional and allow east to west flow from near its Station 75 in St. Landry Parish, Louisiana, to its Station 4 in Matagorda County, Texas. FGT also plans to construct a lateral from Station 4 to Gulf South Pipeline Company’s proposed Coastal Bend Header in Wharton County, Texas, as well as a lateral from near Station 6 to points around Port Arthur in Jefferson County, Texas. FGT will seek Federal Energy Regulatory Commission (“FERC”) approval to construct and rearrange the necessary facilities, including the laterals, and initiate a new Rate Schedule FTSWD-2 for the Western Division east to west service. FGT’s new FTS-WD-2 Service will provide substantially similar rights, terms and conditions as contained in FGT’s Rate Schedule FTS-WD. FGT anticipates that service to the Coastal Bend Header will be available in the 3rd Quarter of 2018, subject to timely and necessary regulatory approvals. However, FTS-WD-2 service to other existing or proposed delivery points, including along the Port Arthur lateral described above, may be phased to commence service as early as the 2nd Quarter of 2018. Firm Transportation Capacity As referenced above, capacity in this Open Season is offered under FGT’s proposed Rate Schedule FTS-WD-2. 1 FGT has secured binding commitments with Anchor Shippers. Such commitments will not be subject to pro-rationing and will be considered in determining, in FGT’s discretion, the optimal size and design of the Project. FGT is offering other interested parties the opportunity to attain status as an Anchor Shipper (with no pro-rationing). To be considered eligible for Anchor Shipper status, a party must execute an acceptable binding Precedent Agreement for (i) a minimum capacity of 100,000 Dth/d and, depending on rate level, (ii) a minimum term of either 10 or 15 years. The primary term for all other requests for FTS-WD-2 Service on the Project shall be a minimum of 10 or 15 years, depending on rate level. Primary Receipt and Delivery points subject to this open season are to new or existing points within the Project path, although FGT may consider other points. For Shippers desiring Recourse Rates for FTS-WD-2 Service, such will be established in the contemplated FERC proceeding. For Shippers interested in a Negotiated Rate, please contact one of the FGT representatives identified below. Shippers will also be responsible for all applicable Surcharges and Fuel Reimbursement related to the service proposed under Rate Schedule FTS-WD-2. Open Season Procedures During this Open Season, any Shipper interested in contracting for the subject capacity should execute and return the following documents: Precedent Agreement Attachment 1 to the Precedent Agreement which must include the following: o Contract Maximum Daily Transportation Quantity (“MDTQ”) o Primary Receipt and Delivery points and Maximum Daily Quantity (“MDQ”) o An election of a fixed Negotiated Reservation Rate or the FTS-WD-2 Recourse Rates. o Primary Term Credit Agreement (Attached to the Precedent Agreement) FGT reserves the right to reject any and all bids, including non-conforming bids. Bids that have a delayed in-service requirement or other contingencies, or that are incomplete or include changes to the form of precedent agreement provided by FGT will be deemed “non-conforming” bids. FGT’s discretion to reject or accept a bid, including any non-conforming bid, shall be exercised on a not unduly discriminatory basis. After the close of this Open Season, FGT will evaluate all conforming and acceptable bids. Awards of capacity, if any, will be based on the highest present value of the reservation charges produced by an acceptable bid, or combination of acceptable bids, received in this Open Season, 2 up to the total quantity that results from the facilities that FGT determines, in its sole discretion, to construct. The total capacity offered and to be awarded in this Open Season will be based on the facilities required to provide requested capacity and final and timely execution of Precedent Agreements with Shippers. FGT may, in its sole discretion, at any time during the Open Season extend the closing date of the Open Season, or modify the terms of or terminate the Open Season. Submission of Binding Bids All submitted bid(s) pertaining to the Project shall be binding to Shippers. Shippers desiring to submit bids should contact FGT to receive the form of Precedent Agreement and, prior to the close of the Open Season, complete and submit all required documents in duplicate, by registered or certified mail, courier or fax at any time during the Open Season to: Florida Gas Transmission Company, LLC 1300 Main Street Houston, TX 77002 Attn: Mike Bryant Gary Dreadin Telephone: (713) 989-2214 (713) 989-2084 Fax: (713) 989-1160 Open Season materials are provided for informational purposes to enable Shippers to obtain firm transportation services to be made available under the Project. However, the information contained herein establishes no contractual or other relationship between FGT and any party. 3