Dauphin Island Gathering Partners

First Revised Volume No. 1

Effective Date: 03/16/1999, Docket: CP98- 6-003, Status: Effective

Original Sheet No. 71 Original Sheet No. 71 : Effective

4. RATES AND CHARGES

4.1 Applicable Rates:

The applicable rates for service under Rate Schedule FT-1 (DI) are the Maximum

Reservation and Commodity Rates for Rate Schedule FT-1 (DI) set forth on the

applicable currently effective sheets of Transporter's FERC Gas Tariff; provided,

however, upon notice to and concurrence by Shipper, Transporter has the right at any

time and from time to time to adjust the rates applicable to any transportation service

under Rate Schedule FT-1 (DI) to any level not less than the Minimum nor more than the

Maximum Rates established for this Rate Schedule and set forth on the applicable

currently effective sheets of Transporter's FERC Gas Tariff. In the event that

Transporter makes such an adjustment, such adjusted rates (a) shall apply solely to

service on the Path(s) agreed upon by Transporter, and (b) shall be applicable for the

period agreed upon by Transporter. Transporter shall file with the Commission the

required reports of any adjustments below the Maximum Commodity and/or Reservation

Rates for service under this Rate Schedule. Shipper shall pay Transporter any applicable

liquid transportation charge and for costs incurred by Transporter for the recovery of

liquid hydrocarbons from Shipper's gas by Transporter using conventional gravity

separation facilities during transportation, the amount of $3.50 per barrel for each barrel

allocated to Shipper; a barrel shall equal 42 U.S. gallons.

4.2 New Facilities Charge:

In addition to the charges pursuant to Section 4.1 of this Rate Schedule, Transporter shall

charge Shipper an amount to recoup all of Transporter's costs associated with the new

facilities constructed at the Shipper's request in order for Transporter to provide

transportation service under this Rate Schedule. Such costs associated with the new

facilities shall be paid by Shipper on a lump sum basis, unless an incremental fee basis is

agreed upon by Shipper and Transporter. Neither the amount of any New Facilities

Charge collected nor the costs of such facilities shall be recognized in establishing

Transporter's general system rates. The applicable New Facilities Charge shall be stated

in the FT-1 (DI) Transportation Service Agreement.