Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 01/14/2006, Docket: RP06-145-000, Status: Effective

First Revised Sheet No. 46.01 First Revised Sheet No. 46.01 : Effective

Superseding: Original Sheet No. 46.01

FTS-2 RATE SCHEDULE

FIRM TRANSPORTATION SERVICE (Continued)

(g) 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.

(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(h), 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.