Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 04/22/2009, Docket: RP09-468-000, Status: Effective

First Revised Sheet No. 381 First Revised Sheet No. 381

Superseding: Original Sheet No. 381

GENERAL TERMS AND CONDITIONS (Cont'd)

35. RETAINAGE ADJUSTMENT MECHANISM (RAM)

35.1 In General. Retainage, as defined at Section 1 of the General Terms and Conditions, shall apply to all

Rate Schedules in Volume Nos. 1 and 2 of this Tariff and to Transporter's gathering and processing services

that provide for Retainage to be supplied by Shipper (the Applicable Rate Schedules). The amount of such

Retainage shall be determined based upon the Retainage percentages, as set forth at Sheet No. 44 of this

Tariff, which sheet includes the following Retainage percentages: Transportation Retainage, Storage Gas Loss

Retainage, Processing Retainage and Gathering Retainage (hereinafter the "Retainage percentages"). The

Storage Gas Loss Retainage Percentage applicable to Rate Schedules FSS-M and ISS-M will be calculated

separately. Those Retainage percentages shall be adjusted pursuant to the Retainage Adjustment Mechanism

(RAM) set forth in this Section. Transporter shall not recover any extraordinary gas losses pursuant to this

provision.

35.2 Transporter's RAM Filing. Annually, or at such other times as Transporter in its reasonable discretion

determines necessary based upon operating or other conditions, Transporter shall adjust the Retainage

percentages, to take into account both prospective changes in Retainage requirements and unrecovered Retainage

quantities from the preceding period as described at Section 35.4 below for transportation, storage,

processing or gathering. That Retainage adjustment shall be effected by means of a Retainage Adjustment

Mechanism filing (RAM), which shall be filed with the Commission (i) annually on or before March 1 to become

effective April 1 (Annual RAM Filing), and (ii) at such other times as required by operating or other

conditions, to become effective 30 days after filing (Periodic RAM Filing).

35.3 Accounting for Activity. Transporter will account for all under or over recovered company-use, lost

and unaccounted-for quantities in Account No. 186.

35.4 Retainage Percentage. The four Retainage percentages, as adjusted by Transporter through its RAM

filings, shall each consist of the sum of (i) the Current Retainage Percentage, and (ii) the Unrecovered

Retainage Percentage, calculated in the following manner for each of the three Retainage percentages,

respectively:

(a) Current Retainage Percentage Component. In each Annual and Periodic RAM Filing, Transporter

shall calculate the Current Retainage Percentage by (i) estimating the total company-use, lost, and

unaccounted-for quantities required during the 12-month period commencing with the effective date of

Transporter's RAM filing (Current Retainage Quantities) and (ii) dividing that volumetric figure by the total

quantities estimated by Transporter to flow under the Applicable Rate Schedules which are the subject to that

particular retainage percentage during the same 12-month period commencing with the effective date of the RAM

filing (Current Rate Schedule Quantities).

(b) Unrecovered Retainage Percentage Component. In each Annual RAM Filing, Transporter shall

calculate the Unrecovered Retainage Percentage by: (i) determining the company-use, lost, and unaccounted-for

quantities for the preceding calendar year (Preceding Annual Period); (ii) subtracting the Retainage

quantities retained by Transporter during that Preceding Annual Period; and (iii) dividing the result (the

Unrecovered Retainage Quantities), whether positive or negative, by the Current Rate Schedule Quantities for

the 12-month period commencing on the effective date of that Annual RAM filing.