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. 63 Substitute Original Sheet No. 63 : Effective

Superseding: Original Sheet No. 63

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 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.

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. Transporter shall not use the amounts so

collected either as revenues or costs in establishing its

general system rates. The