Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 369 Original Sheet No. 369

GENERAL TERMS AND CONDITIONS (Cont'd)

27. CONSTRUCTION OF FACILITIES - FACILITY CHARGE

27.1 Arrangement for Construction of Transmission Facilities. Shipper may request Transporter to

construct, maintain and operate, either all or a part of, the lateral line for the transportation of

gas from Transporter's main transmission line to Shipper's markets, or when the delivery point to

Shipper at Transporter's main transmission line is in close proximity to a compressor station of

Transporter, Shipper may request Transporter to provide facilities to deliver gas to Shipper in excess

of Transporter's main line operating pressure. If Transporter shall determine that the granting of

such request by Shipper is necessary or desirable, that no undue burden will thereby be placed upon

Transporter, and that no impairment of Transporter's ability to render adequate service to its shippers

will result therefrom, Transporter will construct or provide such facilities if it can obtain proper,

necessary authorization.

27.2 Method of Payment.

(a) In the event Transporter shall provide a lateral line or other transmission facilities at

the request of Shipper, Shipper will pay Transporter for the costs of such facilities by paying in

addition to the amount paid for natural gas, a facility charge consisting of the sum of the following

components:

(1) Depreciation computed at the annual accrual rates being used by Transporter for

booking depreciation expense applicable to such facilities;

(2) Return computed at the latest rate allowed Transporter by Federal Energy

Regulatory Commission in a formal rate determination applied to the original cost of

the facilities less accrued depreciation and plus necessary working capital

applicable to such facilities;

(3) Taxes paid for the ownership and operation of such facilities; and

(4) Operation and maintenance expenses applicable to such facilities.

(b) The annual amount of the facility charge shall be established starting with the first day

of the calendar month in which Transporter shall have completed or made available for operation the

facilities requested by Shipper. Such amount shall be estimated by Transporter when the facilities are

made available and at the beginning of each calendar year thereafter. Each month, Transporter will

bill Shipper for one-twelfth of the estimated annual facility charge. An adjustment will be made if

necessary at the end of each calendar year to reflect the cost applicable to said facilities for

the year.

27.3 Agreement. In each case where Transporter agrees to construct facilities at the request of the

Shipper, the Service Agreement will contain as an Exhibit thereto an agreement concerning such

facilities, executed in the form as set forth in this Tariff.