Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 11/16/1997, Docket: RP98- 18-000, Status: Effective

Fourth Revised Sheet No. 37 Fourth Revised Sheet No. 37 : Effective

Superseding: THIRD REVISED SHEET NO. 37

Transporter's system, Transporter will notify any affected

Shippers receiving service under the PAL Rate Schedule that

they are required to eliminate or reduce their existing Parked

Balances and/or Loan Balances over the period specified in the

notice. Such notices may be provided by telephone, facsimile

or in writing, as well as on Transporter's Electronic Bulletin

Board. Such notices shall be issued to Shippers in order

based upon the net aggregate of each Shipper's outstanding

balance at all Parking and Loan Points beginning with the

largest balance. The minimum period of time for elimination

or reduction of balances that can be stated in such a notice

is the end of the gas day for which the next available

nomination deadline applies.

accordance with Section 6.1 above, Transporter shall cash out

the balance quantity that Shipper was advised, but failed, to

reduce or eliminate at the replacement cost of gas plus ten

percent (10%) for Loan Balances or the sale price of the gas

less ten percent (10%) for Parked Balances. For the purposes

of the preceding sentence, the replacement cost and sale price

of gas shall be computed as follows: (i) all balances subject

to replacement or sale on a particular day will be aggregated

and offered for bid in one lump sum; (ii) all revenues

received from the sale of, or expenses incurred in the

replacement of, such volumes will be aggregated for such day;

and (iii) the aggregate revenues or expenses for each day will

be applied to the aggregate cash out volumes for each day in

chronological order. All volumes offered for sale or purchase

pursuant to this section will be posted on Transporter's

Electronic Bulletin Board in a notice stating the quantity of

gas offered for sale or purchase and the deadline for making

bids. Such volumes will be allocated on a best bid basis,

beginning with the lowest rate bid for purchases and the

highest rate bid for sales.

Shipper with a Parked or Loan Balance of less than 50 Dth to

eliminate its existing Parked or Loan Balance under this

Section 6 within thirty (30) days. If Shipper fails to comply

with this notice, any Parked Balance remaining after thirty

(30) days will be cashed out at ninety percent (90%) of the

average New York City Gate Price for the previous month as

published in Natural Gas Week and posted on Transporters

Electronic Bulletin Board; and any Loan Balance remaining

after thirty (30) days will be cashed out at 110% of the

average New York City Gate Price for the previous