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. 90 Substitute Original Sheet No. 90 : Effective

Superseding: Original Sheet No. 90

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 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.

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