Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP96-389-092, Status: Effective

Seventh Revised Sheet No. 40 Seventh Revised Sheet No. 40

Superseding: Sixth Revised Sheet No. 40

FTS-1 RATE SCHEDULE

FIRM TRANSPORTATION SERVICE (Continued)

(h) Transporter and Shipper may mutually agree on a not unduly discriminatory basis to (i)

different termination dates for specified volumes of Transportation Demand within the same Service Agreement

and/or (ii) combine Service Agreements under this Rate Schedule into a single Service Agreement under this

Rate Schedule with different termination dates for specified volumes of Transportation Demand. Transporter

and Shipper may mutually agree to combine Service Agreements only to the extent that the individual Service

Agreement's rates, terms, and conditions can be distinctly maintained and will not be altered by the

combination. For each Service Agreement(s) executed in accordance with this Section 2(g), each of the varying

termination dates and associated volumes of Transportation Demand will be set forth on a separate Appendix A

to the Service Agreement applicable to service pursuant to this Rate Schedule. Each component with a

different termination date for a specified volume of Transportation Demand within the same Service Agreement

and reflected in a separate Appendix A will be regarded as a single Service Agreement for purposes of

Shipper's exercise of any right of first refusal under the provisions of Section 4 of the General Terms and

Conditions of Transporter's Tariff. In the event of a constraint or other occurrence that precludes combined

nominations or allocations, Transporter may advise Shippers under such combined Service Agreements that

capacity must be nominated separately, and is subject to separate allocation, pursuant to the terms of each

separate Appendix A of the Service Agreement. Each Appendix A of the combined Service Agreements will be

identified by its original contract number or such other identification convention determined to be applicable

by Transporter.

3. RATE

(a) The charges to be paid by Shipper, as set forth in paragraph (b) below, shall be no higher

than the applicable total effective maximum charges and no lower than the applicable total effective minimum

charges set forth in the currently effective applicable rate tariff sheets of this Tariff, unless otherwise

mutually agreed by Transporter and Shipper with respect to the charges identified in Sections 3(b) below.

(b) For all service rendered under this Rate Schedule, Shipper each month shall pay Transporter the

charges set forth below, unless otherwise mutually agreed to by Transporter and Shipper with respect to the

charges identified in Sections 3(b)(1), (2) and (3) below, and is specified in Shippers's FTS-1 Service

Agreement:

(1) Reservation Charge: The maximum Reservation Charge for each Month, assessed on each Dth of

Transportation Demand specified in Shipper's FTS-1 Service Agreement.

(2) Commodity Charge: The maximum Commodity Charge per Dth of gas actually delivered each Day

during the Month to or for the account of Shipper.

(3) Overrun Charge: The applicable Overrun Charge per Dth of gas actually delivered on any Day

during the Month in excess of Shipper's Transportation Demand.

(4) Surcharges: The surcharges applicable to this Rate Schedule.

(c) The charges and surcharges described above are subject to adjustment in accordance with the

procedures set forth in the General Terms and Conditions.

(d) The Reservation Charge shall apply as of the date firm transportation service is deemed to

commence by the terms of Shipper's FTS-1 Service Agreement.

(e) In addition to the charges and applicable surcharges, Transporter shall retain from the gas

tendered for transportation the effective Retainage percentage set forth in the currently effective applicable

rate tariff sheets of this Tariff. That Retainage percentage shall be subject to adjustment in accordance

with Section 33 (Transportation Retainage Adjustment) of the General Terms and Conditions. Transporter will

not retain the company use portion of the Retainage for transactions under this Rate Schedule where no

compression is required (e.g. backhaul transactions); however, Transporter will retain the unaccounted for

portion of the Retainage for those transactions.

4. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions are applicable to this Rate Schedule and are hereby made a part

hereof.