Carolina Gas Transmission Corporation

Original Volume No. 1

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

Original Sheet No. 118A Original Sheet No. 118A

Superseding: Original Sheet No. 118

(2) Pipeline may agree to construct the requested

facilities based on Shipper’s agreement to pay an

incremental facilities charge, which is based on the

capital costs associated with such facilities,

including depreciation, return on debt and equity,

related income taxes, and all associated operating

and maintenance costs, to be amortized over a

mutually agreeable period not to exceed the primary

contract term of the Service Agreement between

Pipeline and Shipper. Calculation of the incremental

facilities charge will be consistent with the

principles underlying Pipeline’s currently effective

transportation rates at the time Pipeline and Shipper

agree to the incremental facilities charge. Such

incremental facilities charge will be set forth in

the Transportation Service Agreement with Shipper.

(3) Pipeline may agree to construct the requested

facilities based on Shipper’s agreement to reimburse

Pipeline in full for all reasonable costs incurred to

design, construct, own, operate, and maintain the

facilities. Such cost shall include, without

limitation: (i) any and all filing and approval fees;

and (ii) all taxes (including applicable property

taxes and income taxes) related to such construction,

grossed up to recognize the tax liability resulting

from Shipper’s reimbursement. The reimbursement

shall be due and payable to Pipeline within ten (10)

days of Pipeline’s sending an invoice for same;

provided, however, subject to Pipeline’s written

consent, such monetary reimbursement, plus late fees,

may be amortized over a mutually agreeable period not

to exceed the primary contract term of the

Transportation Service Agreement between Pipeline and

Shipper.