Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 06/12/2009, Docket: RP09-294-002, Status: Effective

First Revised Sheet No. 399 First Revised Sheet No. 399

Superseding: Original Sheet No. 399

GENERAL TERMS AND CONDITIONS (Cont'd)

47. NEGOTIATED RATES

47.1 Availability. Transporter and Shipper may mutually agree to a Negotiated Rate for service under

any Rate Schedule, provided Shipper has not acquired its capacity as a temporary capacity release under

Section 14 (Release and Assignment of Service Rights) of the General Terms and Conditions.

47.2 Recourse Rate Availability. The Recourse Rate shall be available to any Shipper that does not

wish to mutually agree to a Negotiated Rate.

47.3 Limitations. This Section 47 does not authorize the negotiation of terms and conditions of

service.

47.4 Allocations/Interruptions Based on Price. Under any circumstances where the allocation or

interruption of capacity is determined by the rate being paid (including pursuant to General Terms and

Conditions Sections 7.2(d)(1), 7.3(c), 7.4(c), 7.6(c) and (d), and 7.7(b) and (c), and pursuant to General

Terms and Conditions Sections 16.4(a)(2) and 16.4(b)(3)), Shippers paying more than the Recourse Rate will

be considered to be paying the Recourse Rate.

47.5 Capacity Release. With the exception of short-term (one year or less) capacity release

transactions under Order No. 637, the maximum price cap for the release of capacity under a Negotiated Rate

agreement shall be the Recourse Rate. Transporter and a Releasor under Section 14 (Release and Assignment

of Service Rights) of the General Terms and Conditions may, in connection with their agreement to a

Negotiated Rate, agree upon payment obligations and crediting mechanisms in the event of a capacity release

that vary from or are in addition to those set forth in General Terms and Conditions Section 14.8.

47.6 Right of First Refusal. Unless otherwise mutually agreed to by Transporter and Shipper pursuant

to General Terms and Conditions Section 4.1(c)(1)(b), the right of first refusal provided with respect to

certain Shipper's firm Service Agreements, as described in Section 4 (Auctions of Available Firm Service)

of the General Terms and Conditions, shall not apply to firm Service Agreements with Negotiated Rates.

47.7 Assessing Negotiated Rate Bids for Available Firm Capacity. For purposes of assessing bids for

available firm capacity pursuant to General Terms and Conditions Section 4, the net present value of

Negotiated Rate bids containing a reservation rate or other form of revenue guarantee which exceeds the

applicable Recourse Rate during all or any portion of the term contained in the bid, shall not exceed the

net present value that is calculated assuming that the applicable Recourse Rate is in effect during the

full term contained in the bid, in place of the reservation rate or other revenue guarantee contained in

the bid.