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. 38 Substitute Original Sheet No. 38 : Effective

Superseding: Original Sheet No. 38

Transporter shall not use the amounts so collected either

as revenues or costs in establishing its general system

rates. The applicable Incidental Charges shall be stated

in the FT-3 (MP) Transportation Service Agreement. No such

charge shall be applicable to fees incurred pursuant to the

certificate issued in Docket No. CP97-300-000.

4.4 Lost-And-Unaccounted-For Gas:

Shipper shall furnish, or be credited if a gain, its pro

rata share of the quantity of lost-and-unaccounted-for gas

associated with rendering transportation service pursuant

to this Rate Schedule.

4.5 Negotiated Rates:

Shipper and Transporter may agree, on a prospective basis,

to a Negotiated Rate with respect to the charges identified

in Sections 4.1, 4.2 and 4.3 herein which may be less than,

equal to or greater than the Maximum FT-3 (MP) Rates set

forth on the applicable currently effective sheets of

Transporter's FERC Gas Tariff, shall not be less than

Minimum FT-3 (MP) Rates set forth on the applicable

currently effective sheets of Transporter's FERC Gas

Tariff, may be based on a rate design other than straight

fixed variable and may include a minimum quantity. Such

Negotiated Rate shall be set forth on Exhibit "C" of the

executed Transportation Service Agreement and on the

applicable currently effective sheets of Transporter's FERC

Gas Tariff. The Maximum FT-3 (MP) Rates shall be available

to any Shipper that does not choose a Negotiated Rate.

Shippers paying a Negotiated Rate which exceeds the Maximum

FT-3 (MP) Rates will be considered to be paying the Maximum

FT-3 (MP) Rates for purposes of scheduling, curtailment and

interruption and matching competing bids for the right of

first refusal. Acquiring Shippers may not bid or pay a

rate greater than the Maximum FT-3 (MP) Rates and are not

eligible for Negotiated Rates.

In the event that capacity subject to a Negotiated Rate

which is based on a rate design other than straight fixed

variable is released, Shipper and Transporter may agree on

billing adjustments to the Releasing Shipper that may vary

from or are in addition to those set forth in Section 19.7

of the General Terms and Conditions in order to establish

the basis of accounting for revenue from an Acquiring

Shipper as a means of preserving the economic basis of the

Negotiated Rate. Such payment obligation and crediting

mechanism for capacity release shall be set forth on

Exhibit "C" of the executed Transportation Service

Agreement. Nothing in this Section 4.5 shall authorize

Transporter or Shipper to negotiate terms and conditions of

service.