Keyspan LNG, LP (Alng)

Third Revised Volume No. 1

Effective Date: 01/27/2003, Docket: RP03-241-000, Status: Effective

Original Sheet No. 67 Original Sheet No. 67 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

14. CAPACITY RELEASE (continued)

reservation surcharges, and other fixed costs ("Fixed

Charges"), but not charges related to usage, actually paid by

a Customer and received by KLNG which are owed in respect of

the capacity rights released by that Releasing Customer and

acquired by that Customer from KLNG under a New Service

Agreement pursuant to Releasing Customer's release (but not

pursuant to subsequent releases of the same capacity), even if

greater than the Fixed Charges obligation of the Releasing

Customer, up to the maximum rate for the released capacity.

Customer under a New Service Agreement shall be liable to KLNG

for all obligations incurred thereunder, including Fixed

Charges and charges related to usage. Any Replacement

Customer shall be entitled to receive refunds to the extent

the rate paid by it is subsequently determined to be in excess

of a just and reasonable rate; provided, however, that if the

Releasing Customer is subject to a discounted rate and

received credits attributable to Fixed Charges that KLNG is

required to refund, KLNG shall be entitled to reverse such

credits and shall be required to refund such amounts to the

Replacement Customer only to the extent actually collected

back from the Releasing Customer.

(b) The service agreement between KLNG and each Releasing Customer

shall remain in full force and effect and unmodified, as if

the Release from that Releasing Customer and related New

Service Agreement had never been entered into, except (i) the

Releasing Customer shall not be entitled to any of the rights

under the service agreement which are released by it for the

period set forth in the Release and (ii) the Releasing

Customer shall be entitled to a credit as provided in this

subsection. Notwithstanding the above, in the event there is

a permanent release of Releasing Customer's Capacity, KLNG

will agree to discharge Releasing Customer of liability, on a

prospective basis, in whole or in part.

obligated to pay for Fixed Charges and shall simultaneously

credit such invoice with the Fixed Charges that KLNG is

entitled to recover under all New Service Agreements which are

owed in respect of the capacity rights released by the

Releasing Customer and acquired pursuant to such release (but

not pursuant to subsequent releases of the same capacity);

provided, however, that such credit shall be reversed, and

KLNG