Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 31 Original Sheet No. 31 : Effective

RATE SCHEDULE ITS

-----------------

(b) If, at any time and from time to time, the FERC

or any other governmental authority having jurisdiction in the

premises allows or permits Horizon to collect, or to negotiate to

collect, a higher rate for the service hereunder, the rate shall,

subject to any contrary provision of the ITS Agreement or a

separate discount agreement, be increased to the highest such

rate. Should additional documentation be required in order for

Horizon to collect such highest rate, Shipper shall execute or

provide such documentation within fifteen (15) days after a

written request by Horizon. If, at any time and from time to

time, the FERC or any other governmental authority having

jurisdiction in the premises requires Horizon to charge a lower

rate for transportation service hereunder, the rate shall be

decreased to such reduced rate.

5.6 Horizon may from time to time and at any time, upon

twenty-four (24) hours' verbal or written notice, subject to any

provisions on discounting in the ITS Agreement or in a separate

discount agreement, charge any individual Shipper for service

under this Rate Schedule ITS a rate which is lower than the

applicable maximum rate set forth in this Tariff; provided,

however, that such rate charged may not be less than the

applicable minimum rate for service under Rate Schedule ITS set

forth in this Tariff. Horizon will confirm any verbal notice of

the applicable rate in writing. Such notification shall

specifically state the effective date of such rate change and the

quantity of gas so affected. Unless otherwise agreed in the ITS

Agreement or in a separate discount agreement, Horizon may at any

time further change such rate (subject to any restrictions as to

maximum or minimum rates set out in this Tariff, the ITS Agreement

and/or any discount agreement) upon twenty-four (24) hours' verbal

notice to Shipper, which notice shall be confirmed in writing.

Such notification shall specifically state the effective date of

such rate change and the quantity of gas so affected. Horizon

shall file with the Commission any and all reports as required by

the Commission's Regulations with respect to the institution or

discontinuance of any discount.

5.7 All revenues collected by Horizon as a result of

providing service under Rate Schedule ITS shall be retained by

Horizon unless Horizon has otherwise explicitly agreed on a

different disposition of such amounts.