B-R Pipeline Company

Original Volume No. 1

Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 89 Original Sheet No. 89 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19. INTERCONNECT FACILITIES (Continued)

19.4 Existing Facilities. If Transporter has previously paid for all

or a portion of receipt or delivery point facilities under a

facilities agreement with Shipper, Shipper will, nevertheless,

promptly pay Transporter for Transporter's remaining net book value of

such facilities, including any related income taxes, when either of

the following events occurs: (1) Transporter's ability to fully

recover such costs is denied in any Section 4 or Section 5 rate

proceeding, or (2) Shipper permanently ceases operations at the

end-use point or receipt point adjacent to where the facilities were

installed.

19.5 Waiver of Facilities Reimbursement Policy. Transporter reserves

the right to seek a waiver of the foregoing facilities reimbursement

policy, for good cause shown, during any proceeding before the

Commission instituted under Section 7 of the Natural Gas Act. Nothing

in this policy statement will require Transporter to file an

application for a certificate of public convenience and necessity

under Section 7(c) of the Natural Gas Act or will prohibit Transporter

from contesting an application for service filed pursuant to Section

7(a) of the Natural Gas Act.