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. 404 Original Sheet No. 404 : Effective

ARTICLE VII

STANDARD OF REVIEW

7.1 This Service Agreement is based on the Form of Pooling Agreement included

in Pipeline’s Tariff. The Commission shall apply the “public interest”

standard of review rather than the “just and reasonable” standard of

review when acting on proposals by the Commission on its own motion, or

by a signatory to this Service Agreement or a non-signatory, to modify

unilaterally: (1) contract provisions that deviate from the Form of

Pooling Agreement that have been accepted for filing by the Commission;

(2) Section 3.4, which expressly provides for Pipeline’s right to take

certain actions unilaterally (the unilateral actions themselves being

subject to the “just and reasonable” standard of review); or (3) this

Article VII. The standard of review the Commission shall apply when

acting on unilateral modifications regarding all other provisions of this

Pooling Agreement that are proposed by the Commission on its own motion,

or by a signatory to this Pooling Agreement or a non-signatory, shall be

the “just and reasonable” standard of review rather than the “public

interest” standard of review.

ARTICLE VIII

FUTURE CHANGES

8.1 Except as otherwise set forth herein, no modification of or supplement to

the terms and provisions hereof shall become effective except by

execution of a supplementary written agreement between the parties.

ARTICLE IX

WAIVER

9.1 No waiver by Pipeline or Pooler of any default of either party under this

Pooling Agreement shall operate as a waiver of any subsequent default

whether of a like or different character.