Horizon Pipeline Company, L.L.C.
Original Volume No. 1
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Effective Date: 04/15/2002, Docket: GT02- 15-003, Status: Effective
Second Substitute Original Sheet No. 7A Second Substitute Original Sheet No. 7A : Effective
FOOTNOTES APPLICABLE TO SHEET NO. 7
4/ The Negotiated Reservation Rate set forth above shall apply only to service provided to Shipper by Horizon under the FTS Agreement from the Eligible Receipt
Points to the Eligible Delivery Points set forth in footnotes 9 and 10 below, subject to all other applicable terms and conditions set forth herein, provided,
that if Horizon expands its capacity by a cumulative total of 100,000 Dth/d or more beyond the initial estimated design capacity of 380,000 Dth/d or extends its
system into the state of Wisconsin during the initial term of the FTS Agreement, Shipper shall have the right up to the in-service date of such expansion or
extension to elect to pay through the remaining term of the FTS Agreement the negotiated rates set forth above or Horizon's maximum recourse cost-of-service
recourse rates for firm transportation service, as set forth in the FERC Gas Tariff applicable to Horizon from time to time. Nothing herein shall limit
Shipper's rights to refunds if it is charged Horizon's recourse cost-of-service rates and those rates are in effect subject to refund.
5/ Eligible Transportation Quantity. The negotiated rates shall apply only to total aggregate deliveries on any day of a quantity up to the FTS Agreement MDQ, for
all quantities transported under the FTS Agreement and any associated capacity release replacement agreements. In the event that, on any day, Shipper segments
a portion of its capacity (whether a result of capacity release or otherwise), then with respect to such segmented capacity, Shipper shall pay on such day the
rate established hereunder, based on the receipt and delivery points; provided, for purposes of clarity, the total MDQ of the segmented capacity as to which
such rate is applied shall not be increased as a result of the segmentation; provided, further, that Shipper shall not segment its capacity in a manner which
causes the combined MDQ of overlapping segments to exceed Shipper's FTS Agreement MDQ in such overlapping segments. Unless otherwise agreed in writing by
Horizon, any quantities transported in excess of the Eligible Transportation Quantity shall be billed at all applicable maximum rates, charges, and surcharges
set forth in Horizon's FERC Gas Tariff.
6/ Authorized Overrun Service. Unless Horizon otherwise expressly agrees in writing, Authorized Overrun Service provided to Shipper under the FTS Agreement shall
be billed at the applicable maximum Authorized Overrun Rate set forth in Horizon's FERC Gas Tariff, as may be revised from time to time.
7/ Fuel Gas and Gas Lost and Unaccounted For. In addition to the negotiated rates, Shipper shall be charged for Fuel Gas and Gas Lost and Unaccounted For in
accordance with the applicable provisions of Horizon's FERC Gas Tariff, as may be revised from time to time; provided, that (i) in the event Horizon expands its
capacity at any time during the term of the FTS Agreement, then for any period when Shipper is paying Horizon the negotiated rate set out above, such rate shall
be reduced by an amount per Dth equal to Chicago Gas Daily Large Industrial midpoint index price times the post-expansion fuel rate minus 0.80% or (ii) in the
event Horizon extends its system during the term of the FTS Agreement, then for any period when Shipper is paying Horizon the negotiated rate set forth above,
such rate shall be reduced by an amount per Dth equal to Chicago Gas Daily Large Industrial midpoint index price times the post-extension fuel rate minus 1.4%.
However, in no event shall Shipper receive a rate reduction with respect to volumes transported to secondary points outside of the zone(s) containing the
Alliance/NGPL Joliet #1 Grundy receipt point and the Horizon/NGPL McHenry delivery point.
8/ Applicable Maximum Rates, Charges and Surcharges. Except as set forth herein, the Negotiated Monthly Reservation Rates shall be applicable at all times during
the Negotiated Rate Term. To the extent Shipper is paying a negotiated rate, Shipper shall not be liable for any rates, charges, surcharges, exit fees or costs
beyond the rates explicitly set forth herein, including any surcharges which are designated to recover the difference between the negotiated rate established
hereunder and Horizon's cost-of-service recourse rates, as in effect from time to time; provided Shipper shall pay, in addition to such rates, the ACA surcharge
and any successor thereto plus any future surcharges that are generally applied by interstate pipelines in the United States on a uniform basis.
9/ Eligible Receipt Points. The negotiated rates shall only apply to transportation service provided from the following receipt points:
Primary Receipt Points: Alliance/Horizon Joliet #1 Grundy, PIN No. 39800 (300,000 MDQ).
Secondary Receipt Points: The negotiated rates shall apply to service provided from all secondary receipt points (including future interconnects) located in
the zone(s) containing Alliance/Horizon Joliet #1 Grundy and Horizon/NGPL McHenry.