Mobile Bay Pipeline Company

Second Revised Volume No. 1

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

Original Sheet No. 48 Original Sheet No. 48 : Effective

RATE SCHEDULE ITS

(Continued)

(e) Service hereunder shall be subject to and subordinate in all

respects to services provided to and necessary for Transporter to

meet its firm transportation service obligations.

(f) Notwithstanding any other Section hereof, Transporter reserves

the right, after five (5) days notice, to subordinate service to

a Shipper paying a discount rate to enable Transporter to provide

service to another Shipper if the latter would result in a higher

unit rate to Transporter. Transporter will afford any Shipper

whose service is being subordinated by this provision an

opportunity to renegotiate its agreement to increase the unit

rate to maintain its priority; provided, however, that (1) if a

Shipper who is paying a discount rate chooses to increase the

unit rate in response to the higher offer, it shall be allowed

to do so only within the specified five (5) day period, and

Transporter is obligated to accept any such increase that equals

or exceeds the higher offer; and (2) once the Shipper exercises

its right to pay a higher rate and matches or exceeds the higher

offer, then it retains its priority. In addition, when there are

two or more Shippers willing to pay the same higher unit rate to

Transporter to displace a Shipper paying a discount rate and the

requests are for more capacity than that subject to being

displaced, then the available capacity will be given to the

Shipper(s) with the earliest Valid Request Date.

3. TERM

(a) The term for interruptible transportation service under this Rate

Schedule ITS shall be as set forth in the ITS Agreement between

Shipper and Transporter. Transporter may terminate the ITS

Agreement if Shipper fails to cause gas to be delivered during

any two (2) consecutive months when capacity is available and

such failure is not caused by force majeure as defined in

Section 20 of the General Terms and Conditions.