Equitrans, L. P.

Original Volume No. 1

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Effective Date: 05/16/2010, Docket: RP10-616-000, Status: Effective

First Revised Sheet No. 313 First Revised Sheet No. 313

Superseding: Original Sheet No. 313

GENERAL TERMS AND CONDITIONS (Continued)

38. PIPELINE SAFETY COST TRACKER (PSCT) MECHANISM

38.1 Generally. This Section sets forth a mechanism for the recovery of

costs ("Qualifying Costs") incurred by Equitrans under the Pipeline

Safety Improvement Act of 2002 ("PSIA") and the Commission's Orders on

Accounting for Pipeline Assessment Costs in Docket No. AI05-1-000,

provided, however, that Qualifying Costs shall not include costs

associated with operation and maintenance expenses or capital additions

made in the ordinary course of business. The Qualifying Costs

recoverable through the PSCT surcharge shall include (i) the return,

taxes and depreciation expense associated with invested capital and (ii)

the actual operating and maintenance expenses incurred by Equitrans.

The PSCT surcharge shall be expressed in dollars per Dth and shall be

calculated based on projected throughput under Rate Schedules FTS, STS,

ITS and NOFT on a point to point basis. Equitrans shall separately

track all expenses and invested capital related to Qualifying Costs made

on and after September 1, 2005. Equitrans shall use a fifteen percent

(15%) pre-tax return on total invested capital for the purpose of

calculating the return component of any PSCT surcharge filings made

pursuant to this Section. All issues related to the prudence of cost

incurrence, qualification of the claimed costs for recovery under this

surcharge mechanism, and calculation of the charges are preserved for

protest and resolution in the annual filings to be made under Section

38.2.

38.2 Filing of the PSCT. Equitrans shall file the initial PSCT surcharge and

all subsequent changes in such surcharge at least thirty (30) days prior

to April 1st of each year ("Effective Date"). Equitrans shall include

with each PSCT filing an updated Statement of Rates setting forth the

PSCT surcharge and work papers detailing the calculation of such

surcharge in accordance with this Section 38.

38.3 Applicability. The PSCT surcharge shall be assessed on a per dekatherm

basis and apply to all receipts by Equitrans, pursuant to Customer

nominations and after fuel retainage, under Rate Schedules FTS, STS-1,

ITS, and NOFT on a point-to-point basis. Equitrans will not apply the

PSCT surcharge to gas nominated under Rate Schedule NOFT to the extent

that the volumes have been surcharged under Rate Schedules FTS, STS-1 or

ITS.

38.4 Calculation of the PSCT Surcharge

a. Equitrans shall determine the amount of costs to be recovered in its

PSCT by calculating its actual level of Qualifying Costs described

in Section 38.1 as of each December 31 preceding each Effective

Date. The PSCT related gross plant balance as of each December 31st

shall be reduced by the corresponding accumulated provisions for

depreciation and deferred income taxes to arrive at a PSCT Rate

Base. The PSCT Rate Base shall be multiplied by a fifteen percent

(15%) pre-tax return on total invested capital to arrive at a PSCT

Pre-Tax Return Amount. The PSCT Pre-Tax Return Amount shall be

added to PSIA operating, maintenance and depreciation expenses

incurred during the previous calendar year.