Garden Banks Gas Pipeline, LLC

Original Volume No. 1

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Effective Date: 05/10/2010, Docket: RP10-594-000, Status: Effective

Original Sheet No. 146 Original Sheet No. 146

GENERAL TERMS AND CONDITIONS

either: (i) the specific Negotiated Rate included in

such Service Agreement; or (ii) the Negotiated Rate

Formula included in such Service Agreement with

sufficient specificity such that the rate in effect

from time to time can be readily calculated. The

tariff sheet must either incorporate a statement that

the Service Agreement does not deviate from the form

of Service Agreement in any material respect, or

Transporter shall file with the Commission a copy of

the non-conforming agreement.

37.2 CAPACITY ALLOCATION

(a) To the extent the revenue level pursuant to the

Negotiated Rate(s) or Negotiated Rate Formula provided

for in Section 37.1 above, as calculated under

Subsection (b) of this Section 37.2, exceeds the

comparable revenue level at the Recourse Rate, the

Shipper bidding or paying such Negotiated Rate(s) or

rate(s) under a Negotiated Rate Formula shall be

treated, for all capacity allocation purposes, as if

the rate(s) bid or paid had been equal to the Recourse

Rate. Any Shipper, existing or new, paying the

Recourse Rate(s) has the same right to capacity as a

Shipper willing to pay an equal or higher Negotiated

Rate(s) or rate(s) under a Negotiated Rate Formula.

If the Negotiated Rate or the rate under a Negotiated

Rate Formula is higher than the corresponding Recourse

Rate, the Recourse Rate rather than the Negotiated

Rate will be used as the price cap for release

capacity pursuant to Section 19 of these General Terms

and Conditions and for the bidding of capacity

pursuant to Section 19 of these General Terms and

Conditions. Where the Negotiated Rate(s) or rate(s)

under a Negotiated Rate Formula results in revenue

which is greater than the Recourse Rate during certain

portions of the relevant evaluation period but less

than the revenue at the Recourse Rate during other

portions of the relevant evaluation period (but the

revenue pursuant to the Negotiated Rate(s) or rate(s)

under a Negotiated Rate Formula equals or exceeds that

which would be generated at the Recourse Rate for the

entire