Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 02/10/1998, Docket: RP97-153-000, Status: Effective

First Revised Sheet No. 122 First Revised Sheet No. 122 : Effective

Superseding: Original Sheet No. 122

RATE SCHEDULE FT-NN

Firm Transportation Service

(continued)

5. Rates and Charges (continued)

5.6 Shipper shall be responsible for any Balancing and/or

Unauthorized

Overrun penalties Transporter incurs by an upstream pipeline

relating to the transportation and delivery by such upstream

pipeline at off-system delivery points for Shipper's account.

6. Fuel and Losses

Shipper shall reimburse Transporter for any fuel and losses associated

with rendering service pursuant to this Rate Schedule. The quantity

of gas required for fuel and losses shall be equal to the quantity of

gas tendered for transportation multiplied by the applicable fuel

reimbursement percentage shown on the effective Tariff Sheet No. 22,

the result of such calculation rounded to the nearest Dth.

Reimbursement shall be accomplished by reducing the quantity of gas

received for transportation

by the calculated fuel reimbursement quantity.

7. Nominations and Scheduling of Receipts and Deliveries

7.1 Nominations and Scheduling: If Shipper desires transportation

natural gas on any day under this rate schedule, Shipper shall

provide a nomination to Transporter in accordance with Article

26 of the General Terms and Conditions. Based upon the

nominations of shipper, Transporter shall schedule receipts and

deliveries of gas in accordance with such Article 26 of the

General Terms and Conditions.