Carolina Gas Transmission Corporation

Original Volume No. 1

Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 62 Original Sheet No. 62 : Effective

3. RATES AND CHARGES

3.1 The Summary of Rates and Charges of this Tariff sets forth the

Recourse Rates applicable to each service provided under this

rate schedule, and the range represented by the maximum and

minimum rates stated for each such service. Shipper shall pay

the Recourse Rates for service under this rate schedule unless

Pipeline, in its reasonable judgment, offers to discount its

rates to Shipper under GT&Cs Section 30, or unless the parties

have agreed to a Negotiated Rate under GT&Cs Section 29. Any

discount or Negotiated Rate agreed to by Pipeline, and the

effective period thereof, shall be stated on an executed Exhibit

A to the Service Agreement. The rates for service under this

rate schedule shall not be discounted below the applicable

minimum rates stated in the Summary of Rates and Charges of this

Tariff. The First Day Rate will be applied for each separate

transaction on the day(s) that the gas quantities initially are

parked or loaned hereunder. The Subsequent Day Rate will be

applied to Shipper’s PAL account daily balance for each separate

transaction on all days excluding the first day(s) that gas is

parked or loaned hereunder.

3.2 Pipeline shall charge Shipper and Shipper shall pay Pipeline for

service under this rate schedule each applicable Month, the sum

of the following amounts:

(a) First Day Charges. The product of the quantities of gas in

Shipper’s PAL account for each separate transaction and the

First Day Rate, as determined under Section 3.1 herein, for

the applicable day(s) that service is provided by Pipeline.

(b) Subsequent Day Charges. The product of the quantities of

gas in Shipper’s PAL account for each separate transaction

and the Subsequent Day Rate, as determined under Section

3.1 herein, for the applicable day(s) that service is

provided by Pipeline.

as set forth in GT&Cs Section 27.

3.3 Charges shall commence on the first day of the agreed on

transaction and continue until the transaction is closed out.