Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 12/01/2002, Docket: RP02-534-000, Status: Effective

Original Sheet No. 208 Original Sheet No. 208 : Superseded

GENERAL TERMS AND CONDITIONS

(Continued)

27. POLICY WITH RESPECT TO FEES AND CONSTRUCTION OF LATERAL,

DELIVERY AND RECEIPT FACILITIES (Continued)

In addition, Transporter's construction, acquisition,

installation and/or operating cost for any project or

portion of a project under the payment method specified

in Section 27.2(b) or Section 27.2(c) shall not exceed

ten million dollars ($10,000,000.00); any Shipper

requiring new facilities costing more than ten million

dollars ($10,000,000.00) must elect the payment method

specified in Section 27.2(a)for Transporters costs in

excess of ten million dollars ($10,000,000.00).

Transporter may waive this ten million dollar

($10,000,000.00) limit on a non-discriminatory basis if

funds are available to Transporter to support the

requested new facilities.

For purposes of this Section 27, Transporter's

construction, acquisition, installation and/or

operating costs shall include, but shall not be limited

to: Transporters' design, equipment, labor, material,

supervision, construction and construction financing

costs, taxes (whether income or otherwise), filing fees

and associated costs, right of way costs and permitting

costs.

Nothing in this policy statement shall require

Transporter to file an application for a certificate of

public convenience and necessity under Section 7(c) of

the Natural Gas Act. Nothing in this policy statement,

further, shall prevent Transporter from contesting an

application for service filed pursuant to Section 7(a)

of the Natural Gas Act.