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. 316 First Revised Sheet No. 316

Superseding: Second Substitute Original Sheet No. 316

GENERAL TERMS AND CONDITIONS (Continued)

41. TENNESSEE CAPACITY SURCHARGE TRACKER (TCST)

41.1 Purpose. This Section provides for the recovery of Tennessee Gas Pipeline capacity

costs incurred by Equitrans through a Gas Transportation Agreement for use under

Tennessee Gas Pipeline Rate Schedule FT-A for the period October 1, 2008 through

August 31, 2010 (Transportation Agreement). The firm reservation charges associated

with Transportation Agreement (Capacity Costs) shall be recovered by means of this

surcharge tracker. The TCST rate shall be applicable to shippers on the Equitrans'

Big Sandy Pipeline under Rate Schedules FTS and ITS. The TCST rate will be

calculated in accordance with Section 41.4 below.

41.2 Capacity Utilization. Transportation Agreement provides for 82,000 Dth per day of

firm transportation service from Glancy Fork, the Equitrans Big Sandy interconnect

with Tennessee Gas Pipeline to Dry Creek, an interconnect on Tennessee Gas Pipeline

with Texas Eastern Transmission Corporation. The firm capacity on Tennessee for

delivery to Dry Creek is available to Big Sandy Shippers on a daily basis. Big

Sandy firm shippers have priority over interruptible shippers to nominate to Dry

Creek. In the event firm nominations to Dry Creek exceed the 82,000 Dth /day, the

Capacity will be allocated based on a percentage of total nominations received. If

Dry Creek capacity is available to Interruptible shippers and the nominations

exceed available capacity, interruptible capacity will be allocated based on a

percentage of total interruptible nominations received. Firm and Interruptible

shippers nominating gas to Dry Creek will be responsible for fuel and volumetric

charges assessed by Tennessee Gas Pipeline to transport gas to Dry Creek.

41.3 TCST Filings. Annually, or at such other times as Equitrans in its reasonable

discretion determines necessary, Equitrans may adjust the TCST rate to take into

account both prospective changes in Capacity Costs and unrecovered Capacity Costs

from the preceding period as described in Section 41.4 below. That adjustment

shall be effected by Equitrans' making a Capacity Cost Tracker filing with the

Commission annually on or before September 1 to become effective October 1 (Annual

TCST Filing).

Within 90 days prior to the expiration of the Gas Transportation Agreement under

Tennessee Gas Pipeline Rate Schedule FTA on August 31, 2010, Equitrans may make a

filing to compare projected total revenue collected under the Tennessee Surcharge

Tracker to the projected total costs incurred under the Tennessee Agreement and

adjust the TCST rates to ensure accurate recovery of the Tennessee capacity costs.

Equitrans will stop billing the TCST rates upon full recovery of all costs incurred

under the Tennessee Agreement.

41.4 Calculation of TCST Rate. In each Annual or Periodic filing, Equitrans shall

calculate the TCST Rate using the following methodology:

(a) Equitrans will estimate Capacity Costs for the prospective 12 months based

on the Equitrans Firm Transportation Agreement FT-A with Tennessee Gas

Pipeline ("Prospective Capacity Costs ").

(b) Equitrans will separately adjust the Prospective Capacity Costs upward or

downward if and to the extent that Equitrans under-recovered or over-

recovered Capacity Costs during the prior 12-month period. Equitrans will

determine the existence and amount of such under-recovery or over-recovery

by determining the TCST revenues received from Customers, during the prior

12 month period and subtracting the actual Capacity Costs incurred by

Equitrans during the prior 12-month period adjusted for any Tennessee

capacity release revenues collected by Equitrans under Transportation

Agreement during the prior 12-month period. Capacity release revenues will

be credited to Big Sandy Firm Shippers only through the TCST reservation

charge. The remaining over recovered or under recovered dollars, if any,

will be subtracted from or added to the Prospective Capacity Costs.