Dauphin Island Gathering Partners

First Revised Volume No. 1

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

Original Sheet No. 98 Original Sheet No. 98 : Effective

4. RATES AND CHARGES

4.1 Applicable Rates:

The applicable rate for service under Rate Schedule IT-1 (DI) is the Maximum

Commodity Rate for Rate Schedule IT-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 IT-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 quantity and period agreed upon by

Transporter. Transporter shall file with the Commission the required reports of any

adjustments below the Maximum Commodity Rate 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 IT-1 (DI) Transportation Service Agreement.