Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

Effective Date: 07/01/2004, Docket: RP04-361-000, Status: Effective

Original Sheet No. 353 Original Sheet No. 353 : Effective

RATE SCHEDULE PAL

PARK AND LOAN SERVICE

4.3 PAL services shall be provided on an interruptible basis. Interruption of PAL services

may include decreasing, temporarily suspending, or discontinuing the receipt or

delivery of gas if Algonquin in its reasonable discretion determines that such

decrease, suspension or discontinuance is necessary to prevent the impairment of

reliable service or when a higher priority service so requires. Nothing in this rate

schedule shall limit Algonquin's right to take action pursuant to Section 26 of the

General Terms and Conditions of this tariff.

4.4 Commingling of Gas. From the time the natural gas is received by Algonquin at the PAL

Point(s) of Transaction, Algonquin shall have the unqualified right to commingle such

natural gas with other gas in Algonquin's system.

5. OTHER OPERATING CONDITIONS

5.1 Customer shall make all necessary arrangements with other parties at or upstream of

the PAL Point(s) of Transaction where Customer delivers gas to Algonquin for Park

Service or where Customer delivers to decrease the balance in its account for Loan

Service, and at or downstream of the PAL Point(s) of Transaction where Algonquin

delivers gas to decrease the balance in Customer's account for Park Service or where

Algonquin delivers gas to Customer for Loan Service, and such arrangements must be

compatible with Algonquin's system operations.

5.2 To the extent that any upstream entity involved in handling Customer's gas refuses or

is unable to deliver gas to Algonquin, Algonquin shall not be required to continue to

receive gas on behalf of Customer, as contemplated in Section 5.1 of this Rate

Schedule. To the extent that any downstream entity involved in handling Customer's

gas refuses or is unable to receive gas from Algonquin, Algonquin shall have the right

to reduce an equal quantity of the deliveries of gas on behalf of Customer, as

contemplated in Section 5.1 of this Rate Schedule.

6. PARK AND LOAN (PAL) POINT(S) OF TRANSACTION

Any physical or accounting point that exists from time to time on Algonquin's system shall

be available for use by PAL Customers as Point(s) of Transaction. Algonquin shall permit a

PAL Customer to park at the Point(s) of Receipt specified in Exhibit(s) A of Customer's PAL

Service Agreement, and/or Algonquin shall loan to Customer at the Point(s) of Delivery

specified in Exhibit(s) A of Customer's PAL Service Agreement, the quantity specified in

Exhibit(s) A of Customer's PAL Service Agreement.

Customer shall provide a nomination, in accordance with Section 22 of the General Terms and

Conditions, for each transaction identified in Exhibit(s) A to the Customer's PAL Service

Agreement.