Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 04/01/2005, Docket: RP05-221-001, Status: Effective

Fourth Revised Sheet No. 268 Fourth Revised Sheet No. 268 : Effective

Superseding: Third Revised Sheet No. 268

GENERAL TERMS AND CONDITIONS (Continued)

33. TRANSPORTATION RETAINAGE ADJUSTMENT (TRA)

33.1 In General. Retainage, as defined at Section 1 of the General Terms and Conditions,

shall apply to all Rate Schedules in Volume Nos. 1 and 2 of this Tariff that provide for Retainage

to be supplied by Shipper (the Applicable Rate Schedules). The amount of such Retainage shall be

determined based upon the Retainage percentage, as set forth on the applicable rate tariff sheets

of this Tariff. That Retainage percentage shall be established initially by Transporter's Order

No. 636 Compliance Filing and shall be adjusted pursuant to the Retainage adjustment mechanism set

forth in this Section.

33.2 Transporter's TRA Filing. Annually, or at such other times as Transporter in its

reasonable discretion determines necessary based upon operating or other conditions, Transporter

shall adjust the Retainage percentage, to take into account both prospective changes in Retainage

requirements and unrecovered Retainage quantities from the preceding period as described at

Section 33.4 below. That Retainage adjustment shall be effected by means of Transporter's filing

of a Transportation Retainage Adjustment (TRA), which shall be filed with the Commission (i)

annually on or before March 1 to become effective April 1 (Annual TRA Filing), and (ii) at such

other times as required by operating or other conditions, to become effective 30 days after filing

(Periodic TRA Filing).

33.3 Accounting for Activity. Transporter will account for all under or over recovered

company-use, lost and unaccounted-for quantities in Account No. 186.

33.4 Retainage Percentage. The Retainage percentage, as adjusted by Transporter through its

TRA filings, shall consist of the sum of (i) the current Retainage percentage, and (ii) the

unrecovered Retainage percentage, calculated in the following manner:

(a) In each Annual and Periodic TRA Filing, Transporter shall calculate the current

Retainage percentage by (i) estimating the total company-use, lost, and unaccounted-for quantities

required under the applicable Rate Schedule during the 12-month period commencing with the

effective date of Transporter's TRA filing (Current Retainage Quantities) and (ii) dividing that

amount by the total quantities (excluding off-system quantities) estimated by Transporter to flow

under the Applicable Rate Schedules during the same 12-month period commencing with the effective

date of the TRA filing (Current Transportation Quantities).

(b) In each Annual TRA Filing, Transporter shall calculate the unrecovered Retainage

percentage by: (i) determining the total system company-use, lost, and unaccounted-for quantities

for the preceding calendar year (Preceding Annual Period); (ii) subtracting the total system

Retainage quantities retained by Transporter during that Preceding Annual Period; (iii) allocating

the result (the Unrecovered Retainage Quantities), whether positive or negative, to the onshore

lateral, offshore lateral, and mainline zones based on each zone's respective percentage of

Current Transportation Quantities (excluding off-system quantities); and (iv) dividing the

allocated Unrecovered Retainage Quantities by the Current Transportation Quantities (excluding

off-system quantities) attributable to each zone.