Chandeleur Pipe Line Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-197-001, Status: Effective

First Revised Sheet No. 64A First Revised Sheet No. 64A : Effective

Superseding: Original Sheet No. 64A

GENERAL TERMS

AND CONDITIONS

21.0 FUEL AND LINE LOSS ALLOWANCE

Gas used for compressor station fuel and other utility

purposes, including but not limited to line losses and

other unaccounted-for Gas (including Gas lost through

explosion, fire or other calamity) in the operation of

Chandeleur's pipeline system, shall be furnished in kind

by Shipper. The Fuel and Line Loss Allowance (FLLA)

reimbursement percentage will be based on a 12-month

period (which covers the preceding November through the

following October) and will be recalculated annually by

Chandeleur. Adjustment to the FLLA reimbursement

percentage will be made in November of each year and will

become effective January 1st of the following year and

listed on Sheet 5, Statement of Rates. FLLA

reimbursement volumes will be retained based on allocated

receipt volumes.

This FLLA reimbursement percentage shall apply to Rate

Schedules FT and IT. Shipper's nominated delivery

quantities shall equal Shipper's nominated receipt

quantities multiplied by (1-FLLA%/100) rounded to the

nearest Dekatherm. All Gas furnished in kind by Shipper

and not measured as fuel use for compressors, etc. shall

be allocated and classified as unaccounted-for Natural

Gas.

The methodology to change the FLLA reimbursement

percentage consists of, first, accumulating the total

actual monthly Line Loss over the 12-month period.

Second, divide this total Line Loss by the total

throughput of the 12-month period to generate an actual

Line Loss percentage rate. Third, round this percentage

to the nearest 0.1%. Fourth, set this as the new FLLA

reimbursement percentage effective January 1 of the next

year. Any underrecoveries or overrecoveries will not be

carried forward.