Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP07-412-000, Status: Effective

First Revised Sheet No. 85 First Revised Sheet No. 85 : Effective

Superseding: Original Sheet No. 85

PAL RATE SCHEDULE

PARKING AND LENDING SERVICE

1. AVAILABILITY

(a) Service under this Rate Schedule is available from Columbia Gulf Transmission Company

(Transporter) to any Shipper provided that (i) Transporter has sufficient facilities and transportation

capacity available to receive gas from or on behalf of Shipper and deliver gas to or for Shipper, (ii) Shipper

has submitted a valid request for service under Section 3 (Requests for Service) of the General Terms and

Conditions, (iii) Shipper has executed a Master Parking and Lending (“PAL) Agreement with Transporter for

parking or lending service, (iv) Shipper has agreed to be bound by the rates, term, quantity and point(s) of

transaction for service set forth in each applicable PAL Transaction Confirmation Sheet(s) subject to the

Master PAL Agreement submitted to Shipper by Transporter (hereinafter referred to as “Appendix A”),and (v)

Shipper complies with the provisions of this Rate Schedule and with all other applicable provisions of this

Tariff.

2. APPLICABILITY AND CHARACTER OF SERVICE

(a) The service under this Rate Schedule is available to any Shipper who delivers gas to

Transporter (i) at Rayne, Louisiana or points north for delivery to points north of Rayne, Louisiana on

Transporter’s mainline system, up to and including the interconnection of the facilities of Transporter and

Columbia Gas Transmission Corporation, and (ii) in Transporter’s contiguous onshore and offshore lateral

systems.

(b) The service provided under this Rate Schedule shall be performed under Subpart B or G of Part

284 of the Commission’s Regulations. Subject to the limitations set forth below, service under this Rate

Schedule shall consist of parking or lending gas on any Day. Such service shall be provided on an

interruptible basis, subject to quantity limitations set forth in Shipper’s Appendix A(s), and shall consist

of:

(i) Parking Service. Parking Service is an interruptible service which provides for (1)

the receipt by Transporter of gas quantities delivered by Shipper to the point(s) of service agreed

to by Transporter and Shipper on Transporter’s system for receipt of parked quantities; (2)

Transporter holding the parked quantities on Transporter’s system; and (3) the return of parked

quantities to Shipper at the agreed upon time and at the same point(s), or other mutually agreed upon

point(s) on Transporter’s system; provided, however, that Transporter is not obligated to return

parked quantities on the same Day and at the same point(s) that the gas is parked.

(ii) Lending Service. Lending Service is an interruptible service which provides for (1)

the receipt by Shipper of gas quantities from Transporter at the point(s) of service agreed to by

Transporter and Shipper on Transporter’s system for delivery of loaned quantities of gas; and (2) the

subsequent return of the loaned quantities of gas to Transporter at the agreed upon time and at the

same point(s), or other mutually agreed upon point(s) on Transporter’s system; provided, however,

that Transporter is not obligated to accept the return of the loaned gas on the same Day and at the

same point(s) that the gas is loaned.

or deliver gas quantities at the designated point(s) of service for parking or lending service hereunder.

Transportation service is not provided under this Rate Schedule. If Transporter and Shipper agree that

Shipper may receive parked quantities or return loaned quantities at point(s) other than the point(s) of the

park or loan, then Shipper shall accomplish such transactions pursuant to nominations under separate

transportation agreement(s) with Transporter to effectuate the receipt or delivery of gas to or from other

point(s).