Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 06/08/2005, Docket: RP05-371-000, Status: Effective

First Revised Sheet No. 204A First Revised Sheet No. 204A : Effective

Superseding: Original Sheet No. 204A

GENERAL TERMS AND CONDITIONS

27. DISCOUNT, RATE CHANGES AND ADJUSTMENTS con't

to utilize an allocation methodology based in whole or

in part on factors related to past periods. Upon

placing such rates into effect Transporter will

charge and Shipper will pay Transporter's rates in

effect from time to time as adjusted pursuant to

the terms of this Section 27 except to the extent

such rates are otherwise discounted pursuant to

the terms of Section 27.1 hereof. Provided,

however, Shipper may protest or contest any of the

aforementioned filings.

27.3 Annual Charge Adjustment

(a) In order to recover the annual charges assessed by

the Commission under Section 382.202 of the

Commission's Regulations pursuant to the

provisions of the Commission's Order No. 472, this

Section 27 of the GT&C is established to be

applicable to the Rate Schedules contained in

Volume No. 1 of Transporter's Tariff. Because

Transporter is electing to recover the annual

charges assessed by the Commission through the

operation of this Annual Charge Adjustment Clause,

Transporter does not intend to recover any annual

charges recorded in Account No. 928 in any Natural

Gas Act Section 4 rate case.

(b) All of Transporter's Rate Schedules shall include

an Annual Charge Adjustment unit charge (ACA unit

charge) applicable to each Dth of Natural Gas

transported as required by the FERC. The ACA unit

charge is in addition to all amounts otherwise

payable to Transporter.

ACA unit charge shall be filed by Transporter at

least thirty (30) Days prior to the proposed

effective date, unless, for good cause shown, a

lesser notice period and different effective date

is allowed by a valid order.