Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

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Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective

Original Sheet No. 140 Original Sheet No. 140

GENERAL TERMS AND CONDITIONS

(Continued)

30. NEGOTIATED RATES

Pipeline and Customer may mutually agree on a negotiated rate

formula with respect to rates, rate components, charges, or

credits differing from the otherwise applicable recourse rate

under Rate Schedules FT-1, FT-NN, and IT-1.

30.1 Definition.

A negotiated rate may be less than, equal to, or greater than

the maximum recourse rate; shall not be less than the minimum

recourse rate; may be a rate design other than straight fixed-

variable; and may include a minimum quantity.

30.2 Limitations.

This Section 30 does not authorize the negotiation of

terms and conditions of service.

30.3 Recourse Rate Availability.

The recourse rate will be available to any customer that

does not wish to negotiate a rate.

30.4 Allocation of Capacity.

Under any circumstances where allocation of capacity is

determined by the rate being paid, a negotiated rate Customer

paying a rate higher than the maximum recourse rate will be deemed

to be paying a rate equal to such maximum recourse rate.

30.5 Bidding for Capacity

The cap for bidding for capacity under the right of first

refusal provisions in Section 30 of the General Terms and

Conditions of this FERC Gas Tariff is the maximum recourse rate.

30.6 Capacity Release.

The release of capacity under a negotiated rate agreement

is capped at the maximum recourse rate; provided, however, the

negotiated rate Customer will continue to be obligated to pay

Transporter the difference by which the negotiated rate exceeds

the rate paid by the Replacement Customer. Transporter and a

negotiated rate Customer may agree upon payment obligations and

crediting mechanisms which vary from or are different from those

set forth in Transporter's capacity release provisions.

30.7 Accounting Treatment.

Transporter will establish a new sub-account to record the

revenues received from any negotiated rate transactions and shall

maintain supporting information at a level of detail that would be

sufficient for Natural Gas Act Section 4 rate change filing

purposes. Transporter will keep separate and identifiable each

volume transported, billing determinant, rate component,

surcharge, and revenue associated with a negotiated rate to permit

filings in the form of Statements G, I, and J in future rate

proceedings.

30.8 Filing Requirement.

Transporter will file, prior to the commencement of

service under a negotiated rate agreement, a tariff sheet

reflecting the customer's name, rate schedule, negotiated rate,

contract quantities, and points of receipt and delivery. Such

sheet also affirms that actual negotiated rate agreements do not

deviate in any material respect from the form of service

agreements.