Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 08/01/2008, Docket: RP07-478-000, Status: Effective

Second Revised Sheet No. 86 Second Revised Sheet No. 86 : Effective

Superseding: First Revised Sheet No. 86

PAL RATE SCHEDULE

PARKING AND LENDING SERVICE (Continued)

(d) Service under this Rate Schedule shall be provided on an interruptible basis and shall be

available only to the extent that capacity is available from time to time. Service provided hereunder shall

have the priority specified in Section 7 (Capacity Allocation) of the General Terms and Conditions and shall

be subject to interruption as provided in this Rate Schedule and in Section 16 (Interruptions of Service) of

the General Terms and Conditions. Further, service under this Rate Schedule shall be subject to operational

flow orders to the extent provided in this Rate Schedule and in Section 17 (Operational Flow Orders) of the

General Terms and Conditions.

(e) Service under this Rate Schedule shall be provided for a minimum term of one (1) Day and a

maximum term as established by the mutual agreement of Transporter and Shipper. Each parking service or

lending service shall be provided pursuant to separate Appendix A(s); except in the case of Auto PAL, where

both parking and lending service will be managed via the same Appendix A at the same point. The Appendix A(s)

is (are) subject to the Master PAL Agreement between Transporter and Shipper.

(f) The points on Transporter’s system at which service may be available under this Rate Schedule

shall be maintained on a Master List of Interconnections (MLI) that Transporter shall post on its EBB. The

points on the MLI may be incorporated by reference in Shipper’s Appendix A(s).

(g) Service rights under an Appendix A(s) may not be released or assigned.

3. NOMINATING AND SCHEDULING

Shipper shall nominate and Transporter shall schedule under this Rate Schedule pursuant to the

provisions of Section 5 of this Rate Schedule and Section 6 (Nominating, Scheduling and Monitoring) of the

General Terms and Conditions; provided, however, that a Shipper who has executed a Master Auto PAL Agreement

may elect to have Transporter automatically deem certain quantities to be parked or loaned pursuant to the

terms of the Master Auto PAL Agreement.

4. RATE

(a) The charges to be paid by Shipper, as set forth in Section 4(b) below, on any Day, shall be

no higher than the applicable total effective maximum rate charge and no lower than the applicable total

effective minimum rate charge set forth in the currently effective Sheet No. 19A of this Tariff, unless

otherwise mutually agreed to by Transporter and Shipper with respect to the charges identified in Section 4(b)

below.

(b) For all service provided under this Rate Schedule, Shipper each Month shall pay Transporter

the charges set forth below, unless otherwise mutually agreed to by Transporter and Shipper and specified in

Shipper’s Appendix A(s):

(i) Account Balance Charge. The maximum Account Balance Charge for each Dekatherm (Dth)

of gas parked or loaned at each point of service under Shipper’s Appendix A(s) at the end of each Day

during the Month.

(ii) 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) Transporter shall not retain any quantities for Retainage from the gas tendered for parking

or lending under this Rate Schedule.

5. OPERATIONAL REQUIREMENTS OF TRANSPORTER

(a) Shipper may be required, upon notification from Transporter, to cease or reduce deliveries

to, or receipts from, Transporter hereunder within the Day consistent with Transporter’s operating