Carolina Gas Transmission Corporation

Original Volume No. 1

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

Original Sheet No. 201 Original Sheet No. 201 : Effective

29. NEGOTIATED RATES

29.1 Shipper and Pipeline may agree to Negotiated Rates for a specific

term of service under any rate schedule contained in Pipeline’s

Tariff. A Negotiated Rate may apply to all or part of the

capacity covered by a Service Agreement.

29.2 Pipeline will file each Negotiated Rate Service Agreement with

the Commission.

29.3 Absent prior Commission approval, no Negotiated Rate Service

Agreement shall include terms that deviate in any material

respect from those set forth in Pipeline’s pro forma Service

Agreement.

29.4 If Pipeline is unable to collect a Negotiated Rate due to a

change in Commission policy or rejection of a Negotiated Rate

transaction by the Commission prior to or during the term of such

transaction, then, unless Pipeline and Shipper agree otherwise,

Shipper shall pay the Recourse Rate for the service. In such

event, Pipeline will notify Shipper in writing of the requirement

to pay the Recourse Rate and, if the Recourse Rate is greater

than the Negotiated Rate under such transaction, Shipper shall

have 30 days from the date of such notification to give notice in

writing of termination of the applicable Service Agreement, with

such termination to be effective no earlier than the end of the

Month following the Month in which such termination notice is

received.