Columbia Gulf Transmission Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 269 Third Revised Sheet No. 269 : Effective

Superseding: Second Revised Sheet No. 269

GENERAL TERMS AND CONDITIONS (Continued)

Retainage percentage established in that filing, as calculated in accordance with paragraph (a)

above, and (ii) the unrecovered Retainage percentage established in the currently effective Annual

TRA Filing (whether a positive figure reflecting an underrecovery or a negative figure reflecting

an overrecovery), as calculated in accordance with paragraph (b) above. The resulting total

Retainage percentage shall be effective until the effective date of Transporter's next succeeding

TRA Filing.

(d) Except as specifically provided for in Section 33.4(b), the methodology of this

Section 33.4 specified on paragraphs (a), (b), and (c) shall be separately applicable to the

onshore lateral and offshore lateral zones of the FTS-2 and ITS-2 Rate Schedules and the mainline

zone of the FTS-1 and ITS-1 Rate Schedules using their respective transportation quantities,

excluding off-system quantities, as applicable, associated with each zone.

33.5 Termination.

(a) If the provisions of this Section are terminated or otherwise rendered

inapplicable (termination), Shippers under the Applicable Rate Schedules from the effective date

of Transporter's most recent TRA filing through the date of termination (the Termination Period)

shall remain liable for any Unrecovered Retainage Quantities. Transporter shall remain liable to

such Shippers for any excess quantities retained.

(b) Any positive or negative balance in Transporter's Unrecovered Retainage

Quantities account at the date of termination (i) shall be allocated to any successor services

offered by Transporter, or (ii) if no successor services are offered by Transporter, shall be

charged or refunded to Shippers under the Applicable Rate Schedules based on the actual quantities

that flowed during the Termination Period.