Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 124 Original Sheet No. 124 : Effective

GENERAL TERMS AND CONDITIONS

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(4) Based on the above listed criteria, the

economic value of a project shall be determined using the

discounted cash flow rate of return methodology with the minimum

acceptable rate of return to be published from time to time on

Horizon's DART system. When the present value of the incremental

revenues from the project is greater than the present value of the

incremental cost of service, Horizon will pay for the cost of the

contemplated facilities. When the present value of the

incremental revenues from the project is less than the present

value of the incremental cost of service, Shipper shall pay for

the cost of the contemplated facilities.

6.3 Any Contribution in Aid of Construction (CIAC)

pursuant to this Section 6 shall be increased by an amount (Tax

Reimbursement) to compensate for the corporate income tax effects

thereof, according to the following formula;

Tax Reimbursement = [Tax Rate x (CIAC - Present Value

of Tax Depreciation)] x [1 + {Tax Rate/(1 - Tax Rate)}]

6.4 When Horizon has previously paid for Receipt or

Delivery Point facilities under this facilities reimbursement

policy, Shipper shall, nevertheless, promptly pay Horizon for

Horizon's net book value of such facilities when either of the

following events occurs: (a) when Horizon's ability to fully

recover such costs is denied in any Section 4 or Section 5 rate

proceeding; or (b) when Shipper ceases operations at the

facilities.