Crossroads Pipeline Company

Original Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-145-001, Status: Effective

Second Substitute Original Sheet No. 8 Second Substitute Original Sheet No. 8 : Effective

Superseding: Substitute Original Sheet No. 8

3. RATES AND CHARGES

The rates and charges for service under this Rate Schedule

shall include on a monthly basis, each of the effective rates, fees

and charges, as set forth in this Section 3 and as may hereafter

be modified, superseded, or replaced.

3.1 Reservation Charge

Crossroads' firm transportation reservation charge is

designed using the straight-fixed variable method of rate

design. Shipper's monthly Reservation Charge shall be

Shipper's firm MDQ, as stated in Shipper's executed Service

Agreement(s) multiplied by the Reservation Charge rate set

forth in the Service Agreement(s), which shall not exceed the

maximum Reservation Charge rate set forth on Sheet No. 6 of

this Tariff.

Shipper shall be liable for the Reservation Charge for each

month for the term of its Service Agreement. Reservation

Charges are subject to pro rata reductions for the first

and last months to reflect any days of that month on which

service was not contracted to be available.

3.2 Commodity Charge

Shipper's monthly Commodity Charges shall be the product of

the Commodity Charge set forth in the Service Agreement,

which shall not exceed the maximum Commodity Charge rate as

set forth on Sheet No. 6 of this Tariff, multiplied by the

total dekatherms delivered to or for the account of Shipper

during the month.

3.3 Fuel, Losses, and Unaccountables

Shipper shall reimburse Crossroads in kind for gas used for

utility purposes, including but not limited to compressor

fuel, if any, line losses and other unaccounted-for gas

(including gas lost through explosion, fire or other calamity

not caused by Crossroads' negligence) in the operation of

Crossroads' Pipeline system. Shipper shall effect such in

kind reimbursement by tendering to Crossroads for

transportation by Crossroads an amount of gas at Shipper's

Point(s) of Receipt which includes a Gas Reimbursement

Quantity ("GRQ"). The GRQ shall be determined by multiplying

the amount of gas scheduled to be delivered by Shipper to

Crossroads for transportation by Crossroads by the Gas

Reimbursement Percentage ("GRP") as quantified pursuant to

Section 15 of the General Terms and Conditions of this

Tariff.