Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

Effective Date: 11/01/1993, Docket: RP97-157-006, Status: Effective

Sub. Original Sheet No. 157 Sub. Original Sheet No. 157 : Effective

Superseding: Original Sheet No. 157

GENERAL TERMS AND CONDITIONS

FOR TRANSPORTATION SERVICE

(cont'd)

17. TRANSITION COSTS (cont'd)

Transporter will perform an annual revision of the

billing determinants to properly reflect changes in the

service levels of the Shippers receiving service.

(ii) Transporter shall recover the remaining ten (10) percent of

its GSR costs from Transporter's Shippers under the IT Rate

Schedule, over a three-year amortization period, commencing

on the date authorized by the Commission. At the end of the

three-year period, Transporter shall continue to charge or

refund to the extent necessary to cause the under- or over-

collections to be adjusted such that Transporter fully

recovers its GSR costs allocated to Shippers under the IT

Rate Schedule.

If operating experience indicates that Transporter is

unable to recover said ten (10) percent from Shippers under

the IT Rate Schedule, Transporter may make a new proposal to

the Commission to recover any amount of GSR costs not

recovered through IT rates.

17.3 Implementation Costs

Transporter shall recover the costs associated with new facilities

installed to physically implement Order No. 636 (including, but not

limited to, the costs for new metering and flow control equipment),

together with interest (to the extent allowed by the Commission),

through a surcharge to the reservation or demand component of its

rates under the EFT and FT Rate Schedules over a three-year

amortization period commencing on the first day that rates including

implementation costs are put into effect in general Section 4 filings.

17.4 Upstream Supplier's Transition Costs

(a) Flow Through Charges. Transporter has been a customer of several

interstate pipelines, one or more of which may bill Transporter

for costs, directly or indirectly, as Transition Costs under

Order No. 636. Transporter shall be entitled to flow through to

its firm Buyers all Transition Costs that Transporter is required

to pay such upstream pipelines.