Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: CP97-300-002, Status: Effective

Original Sheet No. 77 Original Sheet No. 77 : Effective

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.

5. MONTHLY BILL AND REVENUE BANK

5.1 Monthly Bill:

The Monthly Bill for deliveries under this Rate Schedule

shall be equal to:

(a) Reservation Charge:

(i) If the summation of the quantity of gas

allocated to Shipper's FT-2 (DI)

Transportation Service Agreement at the

Delivery Point(s) in the month equals or

exceeds 75% of the total Maximum Daily

Quantity for all Paths specified in the FT-2

(DI) Transportation Service Agreement for the

month, and multiplied by the number of days in

the month: a reservation charge equal to the

product of the applicable Reservation Rate set

forth on the applicable currently effective

sheets of Transporter's FERC Gas Tariff

multiplied by the quantity of gas allocated to

Shipper's FT-2 (DI) Transportation Service

Agreement at the Delivery Point(s) during the

month; or,

(ii) If the summation of the quantity of gas

allocated to Shipper's FT-2 (DI)

Transportation Service Agreement at the

Delivery Point(s) in the month is less than

75% of the total Maximum Daily Quantity for

all Paths specified in the FT-2 (DI)

Transportation Service Agreement for the

month, and multiplied by the number of days in

the month: a reservation charge equal to the

product of the applicable Reservation Rate

multiplied by 75% of the total Maximum Daily

Quantity for all Paths specified in the FT-2

(DI) Transportation Service Agreement, and