Nautilus Pipeline Company, LLC

Original Volume No. 1

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Effective Date: 12/01/1997, Docket: CP96-790-003, Status: Effective

Original Sheet No. 51 Original Sheet No. 51 : Effective

RATE SCHEDULE FT-3

FIRM TRANSPORTATION SERVICE

8. RATES AND CHARGES con't

(e) For any Contract Quarter in which Shipper does

not satisfy the Throughput Commitment of Section

5.1 of this Rate Schedule, a conditional

reservation charge equal to the Conditional

Reservation rate stated on the currently

effective Sheet No. 9 of Transporter's Tariff or

such lesser rate charged to Shipper under Section

8.2(a), above, multiplied by a quantity of

Natural Gas equal to the difference between the

quantity of Natural Gas that would have been

shipped by Shipper under its Rate Schedule FT-3

Service Agreement had Shipper shipped one hundred

percent (100%) of its MDTQ each Day of such

Contract Quarter and the actual quantity of

Natural Gas shipped by Shipper under its Rate

Schedule FT-3 Service Agreement in such Contract

Quarter as determined by Section 5.2 of this Rate

Schedule;

(f) Any applicable surcharges, penalties, or other

charges due to Transporter under the terms of

this Rate Schedule, Shipper's Rate Schedule FT-3

Service Agreement, and the GT&C of Transporter's

Tariff.