Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 04/01/2004, Docket: RP00-326-004, Status: Suspended

Fifth Revised Sheet No. 206 Fifth Revised Sheet No. 206 : Suspended

Superseding: Fourth Revised Sheet No. 206

GENERAL TERMS AND CONDITIONS (Continued)

16.4 Service Priorities.

(a) Transportation Services. The provisions of this paragraph (a) shall apply to Transporter's

FTS-1, FTS-2, ITS-1, ITS-2, AS-Gulf, IPP-Gulf, PAL, and IMS Rate Schedules and firm and interruptible

service agreements set forth at Volume No. 2 of this Tariff. In the event capacity is not available to

continue the receipt, transportation or delivery of all Shippers' gas which has been scheduled and is

flowing on Transporter's transmission system, Transporter, in the capacity constrained area shall

(i) interrupt capacity sequentially among the Rate Schedule priority groupings set forth below, and (ii)

interrupt within those Rate Schedule priority groupings in the order and manner set forth below until

the necessary level of interruption is achieved:

(1) Quantities under Transporter's IMS Rate Schedule, pro rata on the basis of

Shipper's scheduled parking and lending quantity.

(2) Quantities under Transporter's PAL Rate Schedule, pro rata on the basis of

Shipper's scheduled parking and lending quantity.

(3) Quantities under Transporter's ITS-1, ITS-2, AS-Gulf and IPP-Gulf Rate Schedules,

overrun quantities in excess of a Shipper's Transportation Demand under Transporter's FTS-1 and

FTS-2 Rate Schedules, and quantities under interruptible services set forth at Volume No. 2 of this

Tariff, beginning with quantities attributable to Shippers paying the lowest price, and pro rata

among Shippers paying the same price.

(4) Quantities at primary or secondary receipt points under Transporter's FTS-1 and

FTS-2 Rate Schedules, and quantities under firm services set forth at Volume No. 2 of this Tariff,

pro rata based on Transportation Demand.

(5) Quantities at primary or secondary delivery points under Transporter's FTS-1 and

FTS-2 Rate Schedules, and quantities under firm services set forth at Volume No. 2 of this Tariff,

pro rata based on Transportation Demand.

16.5 Interruptions Based on Price. For purposes of interrupting service pursuant to Section 16.4

(a)(1), Shippers paying more than the Recourse Rate will be considered to be paying the Recourse Rate.