Columbia Gulf Transmission Company

Second Revised Volume No. 1

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

Fifth Revised Sheet No. 269 Fifth Revised Sheet No. 269

Superseding: Third Revised Sheet No. 269

GENERAL TERMS AND CONDITIONS (Continued)

Investments, as such term is defined in Section 33.3 of the General Terms and Conditions of

this Tariff, from the date of its filing of this IFF mechanism ("Cumulative Qualified Capital

Investments").

(d) Transporter shall calculate the amount, if any, by which the Excess Retainage Revenues exceed

50 percent of Transporter's Cumulative Qualified Capital Investments ("Threshold").

Transporter shall share 10 percent of the amount above the Threshold with Shippers ("Shipper

Retainage Revenues"). Shipper Retainage Revenues shall be determined as follows:

SRR = 0.10 X [ERR - (0.50 X CQCI)]

Where:

SRR = Shipper Retainage Revenues

ERR = Excess Retainage Revenues

CQCI = Cumulative Qualified Capital Investments

(e) Transporter shall allocate Shipper Retainage Revenues to each Shipper based on its pro rata

share of the total CUG and LAUF retainage provided by Shippers to Transporter through the

Retainage rates for that such Annual Period covered by Annual Report filed pursuant to Section

33.4.

(f) If at any time the IFF Mechanism is terminated, the Excess Retainage remaining at the time of

termination shall be sold within six months.

33.3 Qualified Capital Investment Criteria

"Qualified Capital Investments" shall mean capital investments that are made to reduce CUG and LAUF as

set forth in this Section 33.3. Whether Transporter's capital investments are deemed Qualified Capital

Investments for purposes of this Section 33 shall be determined as follows:

(a) Qualified Capital Investments

Investments in the following facilities are deemed to be Qualified Capital Investments for purposes of

determining Shipper Retainage Revenues:

• New engines/compressors that replace existing equipment

• Receipt and delivery meter replacements for improved measurement

• Capital upgrades of meters that improve measurement accuracy

• Capital upgrades of compressors that increase efficiency

• Additional gas chromatographs that improve measurement accuracy but do not replace existing

equipment