Carolina Gas Transmission Corporation

Original Volume No. 1

Effective Date: 02/25/2009, Docket: RP09-296-000, Status: Effective

First Revised Sheet No. 43 First Revised Sheet No. 43

Superseding: Original Sheet No. 43

7. FACILITIES

7.1 In order for Pipeline to transport gas under this rate schedule,

it may become necessary for Pipeline to install facilities or to

modify existing facilities. Should Shipper request the

installation or modification of facilities and Pipeline and

Shipper agree to address the cost thereof through one or a

combination of the alternatives set out in GT&Cs Section 2.2(b),

and should Pipeline agree to install facilities or to modify its

existing facilities pursuant to Shipper’s request, Pipeline will

construct and install, or cause to be constructed and installed,

such facilities, or will modify, or cause to be modified, its

existing facilities, and will own and operate such facilities and

all related appurtenant facilities.

7.2 In the event Pipeline and Shipper do not agree to address the

costs of installing or modifying facilities through one or a

combination of the alternatives set out in GT&Cs Section 2.2(b),

Pipeline may agree to construct or modify such facilities so long

as such facilities are constructed or modified on a non-

discriminatory basis for similarly situated Shippers. Whether

facilities will provide a benefit to all Shippers using

Pipeline’s system, making it appropriate to include the cost of

such facilities in Pipeline’s general system rates, will be

determined in a rate proceeding. Title to and ownership of all

facilities shall remain in Pipeline, and Pipeline shall operate

such facilities as part of its system.

8. GOVERNMENTAL AUTHORIZATIONS

8.1 Transportation service under this rate schedule and effective

Service Agreements shall be implemented under any applicable

self-implementing authorizations or program for which Pipeline

has filed or in which Pipeline has agreed to participate.

9. GENERAL TERMS AND CONDITIONS

9.1 All GT&Cs are applicable to this rate schedule and service

hereunder and are made a part hereof. In the event of a conflict

between the GT&Cs and this rate schedule or a Service Agreement

under this rate schedule, the GT&Cs shall govern. In the event

that a rate or a special term or condition set forth in the

Service Agreement conflicts with this rate schedule, the Service

Agreement shall govern.