Destin Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 06/01/2000, Docket: RP00-268-000, Status: Effective

Second Revised Sheet No. 126 Second Revised Sheet No. 126 : Effective

Superseding: First Revised Sheet No. 126

GENERAL TERMS AND CONDITIONS

(Continued)

24. FUEL RETENTION ADJUSTMENT

24.1 General:

The provisions of this Section are applicable to each

of COMPANY's transportation rate schedules set forth in

COMPANY's FERC Gas Tariff under which COMPANY retains

fuel. In addition to the payments by SHIPPER to

COMPANY for transportation services rendered pursuant

to COMPANY's transportation rate schedules, SHIPPER

shall reimburse COMPANY in accordance with the Fuel

Retention Percentage (FRP) applicable to such

transactions. Such FRP shall be designed to reimburse

COMPANY for the volume of its Gas Required for

Operations (GRO). COMPANY's GRO shall consist of (i)

gas used for compressor fuel, and (ii) gas otherwise

used, lost, or unaccounted for in COMPANY's operations.

24.2 FRP Determinations:

After each 12-month period beginning with the first day

of the month of the first anniversary of COMPANY's in

service date, COMPANY shall redetermine the FRP

applicable to its transportation rate schedules in

accordance with the following procedures. COMPANY

first shall calculate the GRO volume attributable to

systemwide operations for its transportation rate

schedules and services using the latest data available

for the preceding twelve-month period. Such GRO

volume, shall be divided by the transportation volumes

received by COMPANY for the preceding 12-month period

to determine the FRP to be applied from the requested

effective date until the FRP is redetermined as

provided for herein. COMPANY shall file revised tariff

sheets with the Commission containing the redetermined

FRP at least thirty (30) days prior to the effective

date requested by COMPANY, which effective date shall

be no later than three (3) months after the end of the

preceding 12-month period; provided, however, that

COMPANY may choose not to file to revise the FRP if the

redetermined FRP varies by less than 0.1 percent from

the FRP in effect at that time. COMPANY shall notify

its SHIPPERS within the above filing period if it

chooses to exercise the option not to revise the FRP.