Great Lakes Gas Transport, L.L.C.

Second Revised Volume No. 1

Effective Date: 01/01/1998, Docket: RP98- 82-001, Status: Effective

Sub. Original Sheet No. 168 Sub. Original Sheet No. 168 : Effective

GENERAL TERMS AND CONDITIONS

FOR TRANSPORTATION SERVICE

(cont'd)

26. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF NEW FACILITIES (cont'd)

26.2 Transporter may waive from time to time, at its discretion, all or a

portion of the facility cost reimbursement requirement set forth in

Section 26.1 if Shipper provides Transporter adequate assurances of

transportation throughput to make construction of the facilities

economical to Transporter. All requests for waiver shall be handled

by Transporter in a manner which is not unduly discriminatory. For

purposes of determining whether a project is economical, Transporter

will evaluate projects on the basis of various economic criteria,

which will include the estimated transportation throughput, cost of

the facilities, operating and maintenance as well as administrative

and general expenses attributable to the facilities, the revenues

Transporter estimates will be generated as a result of such construc-

tion, and the availability of capital funds on terms and conditions

acceptable to Transporter. In estimating the revenues to be gener-

ated, Transporter will evaluate the existence of capacity limitations

downstream of the facilities, the marketability of the capacity, the

location of the markets, the interruptible versus the firm nature of

the transportation service, and other similar factors which impact

whether the available deliverability will actually be transported.