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. 361 Original Sheet No. 361 : Effective

ARTICLE II

TERM OF AGREEMENT

2.1 This Service Agreement shall become effective on ______________, 20__,

and shall continue in effect from Month to Month thereafter unless

terminated by either party by prior written notice.

2.2 Any portions of this Service Agreement necessary to close a park or loan

transaction, or to correct or cash out imbalances, or to make payment

under this Service Agreement as required by the GT&Cs, will survive

termination of this Service Agreement until such time as such balancing

or payment has been accomplished.

ARTICLE III

RATE SCHEDULE AND GENERAL TERMS AND CONDITIONS

3.1 This Service Agreement shall be subject to all provisions of Rate

Schedule PAL and the GT&Cs on file with the Commission, as such may be

revised, superseded, modified, or added to, from time to time, all of

which are by this reference made a part hereof. All of the terms defined

in Pipeline’s Tariff shall have the same meaning in this Service

Agreement.

3.2 Shipper agrees to and shall pay Pipeline the applicable Recourse Rate

provided for in Rate Schedule PAL, as effective from time to time, for

service under this Service Agreement, unless otherwise agreed to by the

parties as specified in Exhibit A hereto. Shipper agrees to and shall

pay Pipeline all other charges, surcharges, and penalties provided for in

Rate Schedule PAL and the GT&Cs, as effective from time to time, for

service under this Service Agreement.

3.3 Shipper agrees that Pipeline shall have the unilateral right to file with

the Commission and place into effect any changes in any of the provisions

of its Tariff, including, without limitation, any of Pipeline’s rates and

charges, rate schedules, GT&Cs, and forms as Pipeline may deem

appropriate in the exercise of its sole discretion. Nothing contained

herein shall prejudice the rights of Shipper to contest at any time the

changes made under this Article III; however, Shipper agrees to pay all

rates and charges, and to comply with all terms and conditions, in effect

under this Tariff.