Columbia Gas Transmission LLC

Third Revised Volume No. 1

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

Original Sheet No. 394 Original Sheet No. 394

GENERAL TERMS AND CONDITIONS (Cont'd)

43. STORAGE INVENTORY TRANSFERS

43.1 Purpose. Pursuant to the restructuring of Transporter's services under Commission Order No. 636, on

November 1, 1993 or such later effective date of Transporter's Order No. 636 Compliance Filing (the Effective

Date), Transporter shall effect a transfer of certain storage inventory gas (the Conversion Transfer) to

shippers converting from Transporter's former CDS, WS, and SGS Rate Schedules to Transporter's current FSS and

GTS Rate Schedules and those shippers receiving direct assignment from Transporter of storage capacity on

upstream pipelines (Converting Shippers). This Section provides the mechanisms through which the Conversion

Transfer shall be effected, and any resulting costs recovered by Transporter.

43.2 The Conversion Transfer Mechanism.

(a) Pursuant to the Conversion Transfer authority referenced above, Transporter, on the Effective

Date, shall transfer to Converting Shippers title to (i) all gas reflected in Shippers' WS Reserve Gas Balance

as of the Effective Date (WS Reserve Gas Balance), and (ii) an additional quantity of Transporter's current

storage inventory based on the aggregate Storage Contract Quantity (SCQ) for Converting Shippers as of the

Effective Date, less the aggregate SCQ and Winter Contract Quantity (WCQ) under Transporter's former FSS and WS

Rate Schedules, respectively, as of the Conversion Date (the Additional Quantity).

(b) Transporter shall allocate to each Converting Shipper at no charge its share of the WS Reserve

Gas Balance, the cost of which was prepaid by those Shippers at the time of nomination.

(c) Transporter shall allocate the Additional Quantity to Converting Shippers pro rata based on

each such Converting Shipper's share of the amount by which (i) the aggregate Storage Contract Quantity (SCQ)

for Converting Shippers, as of the Effective Date exceeds the aggregate SCQ and WCQ under Transporter's former

FSS and WS Rate Schedules, respectively, as of the conversion date. Converting Shippers shall be billed for

their respective allocations of the Additional Quantity in the next regular monthly billing following the

Effective Date. Transporter shall bill Shippers under the GTS Rate Schedule for their respective allocations of

the Additional Quantity in three equal installments during the months of January, February and March following

the effective date of implementation of this Tariff. The cost to be charged to those Converting Shippers shall

be Transporter's imbedded per book storage costs for the transferred gas as of the Effective Date.