Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 11/30/2003, Docket: RP04- 39-001, Status: Effective

2nd Revised Sixth Revised Sheet No. 46 2nd Revised Sixth Revised Sheet No. 46 : Effective

Superseding: First Revised Sixth Revised Sheet No. 46

FTS-2 RATE SCHEDULE

FIRM TRANSPORTATION SERVICE (Continued)

(e) Service rights under an FTS-2 Service Agreement may be released and assigned in accordance

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

an assignee under any such release and assignment shall be subject to the terms and conditions set forth in

this Rate Schedule and in the General Terms and Conditions.

(f) Imbalances under this Rate Schedule are subject to the following requirements:

(1) All imbalances must be eliminated by the end of the calendar month in which they

are reported to Shipper.

(2) A Shipper's imbalance account will not be credited with any imbalance volumes

unless (i) the gas is designated as imbalance gas by the Shipper prior to Transporter's receipt of

any imbalance gas by Transporter or delivery of any imbalance gas by Transporter, and (ii) the

Shipper has properly nominated and scheduled the gas for transportation in accordance with this

Tariff, has been awarded capacity, has had its nomination confirmed and been actually allocated

quantities of gas for shipment.

(3) Imbalances incurred in one rate zone may be eliminated by netting or trading in

that same rate zone or may be eliminated by netting or trading between rate zones, although

elimination of the imbalance between rate zones may constitute transportation service for which

charges apply.

(4) Any imbalance which is not eliminated by the end of the calendar month in which it

is reported to the Shipper is subject to the penalties provided for under this Tariff.

(g) Shipper shall have the right once per year on the anniversary date of its FTS-2 Service

Agreement to permanently decrease or, subject to availability of firm capacity, increase the MDQ set forth in

Exhibit A thereto, upon ninety (90) days prior written notice to Transporter, subject to the following

requirements:

(1) Shipper shall have committed for transportation under an FTS-2 Service Agreement,

all reserves from the Primary Receipt Point set forth on Exhibit A to the FTS-2 Service Agreement for

the term of the FTS-2 Service Agreement, provided such term is for a minimum of three (3) years.

(2) Shipper's right to increase or decrease the MDQ shall be limited to the Primary

Receipt Point associated with the committed reserves as set forth in paragraph (g)(1) above;

(3) If Shipper requests a reduction in its MDQ then Shipper and Transporter shall

mutually agree on the amount of reduction and Shipper shall provide upon Transporter's request a

revised production profile and other reserve and deliverability data supporting the change underlying

the request.

(4) Shipper may request an increase in MDQ under its FTS-2 Service Agreement, subject

to availability of firm capacity as determined by Transporter. Unless otherwise agreed to in writing

between Shipper and Transporter, increases in MDQ shall be at the Recourse Rate for service under

this Rate Schedule.