Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP00-326-004, Status: Effective

Eighth Revised Sheet No. 54 Eighth Revised Sheet No. 54 : Effective

Superseding: Seventh Revised Sheet No. 54

ITS-1 RATE SCHEDULE

INTERRUPTIBLE TRANSPORTATION SERVICE (Continued)

(e) The interconnections at which service is available under this Rate Schedule shall be

maintained on a Master List of Interconnections (MLI) that Transporter shall post on its Electronic Bulletin

Board (EBB). The interconnection points on the MLI shall be available to Shippers and shall be incorporated

by reference in Shipper's ITS-1 Service Agreements.

(f) During any Month, Shipper shall not be permitted to increase its existing flowing

quantities under this Rate Schedule, regardless of the Transportation Quantity set forth in Shipper's ITS-1

Service Agreement, if such increase would cause a reduction of existing quantities flowing on Transporter's

system under a Service Agreement between Transporter and Shipper of equal or higher priority. A scheduled

temporary reduction in the quantities being transported, if requested by Shipper and approved by

Transporter, shall not reduce the level of Shipper's existing quantities flowing on Transporter's system for

purposes of this paragraph.

(g) Service rights under an ITS-1 Service Agreement may not be released and assigned.

(h) 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.

3. BIDDING PROCEDURE

(a) Transporter shall post a notice on its EBB setting forth: (i) the interruptible

transportation capacity it anticipates will be available for the upcoming Month at each applicable receipt

and delivery point; and (ii) the Minimum Bid Rate, inclusive of applicable surcharges for such capacity. The

Minimum Bid Rate shall not be higher than the total effective Maximum ITS-1 Rate set forth in Transporter's

Tariff.

(b) Shippers seeking to obtain all or a portion of that capacity shall, through Transporter's

EBB, submit their bids for the capacity to Transporter, together with their nominations of service (i.e.,

the quantity bid at each nominated point) under the provisions of Section 6 (Nominating, Scheduling, and

Monitoring) of the General Terms and Conditions. Multiple bids may be submitted, and bids may be

withdrawn prior to the nomination deadline. Bids must comply with Section 3(c) below. All bidding shall be

open until the nomination deadline. Transporter shall post all bids received, including quantities and

receipt and delivery points.

offering to pay for the service it has nominated in terms of cents per Dth (¢/Dth) to the nearest hundredth

of a cent (00.00¢). Shipper's bid rate shall be no lower than the Minimum Bid Rate and no higher than the

total effective Maximum ITS-1 Rate as set forth on the currently effective applicable rate tariff sheets of

this Tariff. Bids submitted for higher than the Maximum ITS-1 Rate shall be deemed to be at the Maximum ITS-

1 Rate. Bids submitted for higher than a previously agreed to discounted rate shall be deemed to supersede

such discounted rate. Transporter may reject any bids: (i) for an amount lower than the Minimum Bid Rate;

or (ii) from bidders that do not currently have an ITS-1 Service Agreement with Transporter.