Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 01/07/2020, Docket: RP98-205-001, Status: Accepted

Sub Original Sheet No. 336 Sub Original Sheet No. 336 : Superseded

Superseding: Original Sheet No. 336

GENERAL TERMS AND CONDITIONS

(Continued)

34. SURCHARGE FOR PORTLAND PIPE LINE LEASE EXTENSION COSTS

34.1 Transporter has negotiated a one (l) year extension of a lease

of a certain pipeline facility with Portland Pipe Line

Corporation and such pipeline will be operated as an essential

component of Transporter's system pursuant to a limited-term

Certificate of Public Convenience and Necessity issued April

30, 1998, in Docket No. CP87-39-005 expiring on April 30,

1999.

34.2 Transporter's estimated total costs for the one (1) year

extension of the lease as provided by the terms of the Third

Indenture to Lease executed between Transporter and Portland

Pipe Line Corporation on April 30, 1998 are $10,122,000.

Transporter will recover such lease related costs from its

firm and interruptible transportation customers through a

special surcharge on the jurisdictional rates for such

services over a twelve (12) month period ending April

30, 1999, subject to 34.7 below.

34.3 Transporter's special surcharge for recovering lease related

costs shall be derived as follows:

(i) estimated lease related costs shall be classified

as fixed or variable;

(ii) all estimated fixed lease related costs shall be

assigned to the Reservation Charge as a surcharge

for Transporter's firm transportation services and

all estimated variable lease related costs shall be

assigned to the Commodity Charge as a surcharge for

Transporter's firm transportation services;

(iii) the monthly surcharge for lease related costs per

dekatherm of billing demand added to the

Reservation Charge under Transporter's currently

effective Base Tariff rates for service under

Transporter's firm transportation rate schedules

shall be derived by dividing the estimated fixed

lease related costs by the sum of the annual firm

billing determinants, in dekatherms, agreed to in

Docket No. RP97-8-000 (2,312,904 Dth) for such firm

services;

(iv) the monthly surcharge for lease related costs per

dekatherm of transportation volume added to the

Commodity Charge under Transporter's currently