Crossroads Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/2007, Docket: RP07-433-004, Status: Effective

Second Revised Sheet No. 359 Second Revised Sheet No. 359 : Effective

Superseding: First Revised Sheet No. 359

GENERAL TERMS AND CONDITIONS (Continued)

35. TRANSPORTATION RETAINAGE ADJUSTMENT (TRA)

35.1 In General. Retainage, as defined at Section 1 of the General Terms

and Conditions, shall apply to Rate Schedules FT-1 and IT-1 (the Applicable

Rate Schedules). The amount of such Retainage shall be determined based upon

the Retainage percentage, as set forth at Sheet No. 6 of this Tariff, which

sheet includes the following Retainage percentage: Transportation Retainage

(the "Retainage percentage"). That Retainage percentage shall be adjusted

pursuant to the Retainage adjustment mechanism set forth in this Section.

35.2 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 35.4 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).

35.3 Accounting for Activity. Transporter will account for all under or

over recovered company-use, lost and unaccounted-for quantities in Account

No. 186.

35.4 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).