Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: RP98- 17-000, Status: Effective

Substitute Original Sheet No. 37 Substitute Original Sheet No. 37 : Effective

Superseding: Original Sheet No. 37

4. RATES AND CHARGES

4.1 Applicable Rates:

The applicable rates for service under Rate Schedule FT-3

(MP) are the Maximum FT-3 (MP) Rates 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-3 (MP)

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 at the 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 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-3 (MP)

Transportation Service Agreement.

4.3 Incidental Charges:

In addition to the charges pursuant to Sections 4.1 and 4.2

of this Rate Schedule, Transporter shall charge Shipper an

amount to recoup any filing or similar fees which

Transporter incurs in rendering service hereunder, which

Shipper has received written notice of prior to the

execution of the applicable Transportation Service

Agreement and which have not been previously paid by

Shipper.