Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2010, Docket: RP10-134-001, Status: Pending

Sixth Revised Sheet No. 268 Sixth Revised Sheet No. 268

Superseding: Fourth Revised Sheet No. 268

GENERAL TERMS AND CONDITIONS (Continued)

33. INCENTIVE FIXED FUEL ("IFF") MECHANISM

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.

The IFF mechanism set forth in this Section 33 is replacing the Transportation Retainage Adjustment

("TRA") mechanism previously set forth in Section 33 of the General Terms and Conditions of this

Tariff; provided, however that:

(a) The TRA mechanism provided for the recovery of "Unrecovered Retainage Quantities" as such term

was previously defined in Section 33.4(b) of the General Terms and Conditions of this Tariff.

Unrecovered Retainage Quantities were the difference between the total system company-use,

lost, and unaccounted-for quantities for the preceding calendar year and the total system

Retainage quantities retained by Transporter during that preceding calendar year.

(b) Shippers under all the Applicable Rate Schedules shall remain liable for any Unrecovered

Retainage Quantities from the period that the TRA mechanism was in effect. Transporter shall

remain liable to such Shippers for any excess quantities retained from the period that the TRA

mechanism was in effect.

33.2 Shipper Retainage Revenue Allocation

Transporter shall calculate revenues from Transporter's sales of excess Retainage to be shared with

Shippers as follows:

(a) For each twelve-month period that this IFF mechanism is in effect ("Annual Period"),

Transporter shall calculate the difference between the gas provided by Shippers for Retainage

and Transporter's actual company-use gas ("CUG") and lost and unaccounted-for fuel ("LAUF")

("Excess Retainage").

(b) Transporter shall calculate the revenues it generates from sales of Excess Retainage ("Excess

Retainage Revenues") actually sold. Transporter is not required to sell Excess Retainage

during any Annual Period; provided, within a two year period, Transporter shall sell at least

75% of the Excess Retainage that has accummulated under this IFF Mechanism.