Mobile Bay Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 47 Original Sheet No. 47 : Effective

RATE SCHEDULE ITS

(Continued)

2. APPLICABILITY AND CHARACTER OF SERVICE

(a) The transportation service provided under this Rate Schedule ITS

shall be performed under Subparts B, G, or H of Part 284 of the

Commission's regulations. This Rate Schedule ITS shall apply to

all gas transported pursuant to an executed ITS Agreement.

(b) Service hereunder shall be provided on an interruptible basis.

Interruption of service includes decreasing, suspending, or

discontinuing the receipt or delivery of gas in accordance with

Section 19 of the General Terms and Conditions. Service may be

interrupted if after reasonable notice give the circumstances,

Shipper fails materially to comply with any provisions of this

Rate Schedule ITS or the ITS Agreement. Transporter shall have

the right to waive, on a non-discriminatory basis, any one or

more specific defaults by any Shipper; provided, however, that no

such waiver shall operate or be construed as a waiver of any

other existing or future default or defaults, whether of a like

or different character. In addition, Transporter may interrupt

service if necessary to serve a higher priority customer, to

maintain gas quality, or to otherwise maintain the integrity of

its system.

tendered by or on behalf of Shipper for transportation at the

receipt point(s) specified in the executed ITS Agreement, the

transportation hereof through Transporter's pipeline system, and

the delivery of natural gas by Transporter to Shipper or for

Shipper's account at the delivery point(s) specified in the ITS

Agreement. Transporter shall not be required to accept any gas

tendered in excess of any Maximum Daily Quantity (MDQ) specified

in the ITS Agreement.

(d) The gas to be transported hereunder shall be received and

delivered at uniform hourly and daily rates of flow as nearly as

practicable and in accord with the daily quantities specifically

set forth in Section 8 of the General Terms and Conditions.