Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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Effective Date: 10/17/2006, Docket: RP06-177-000, Status: Effective

Original Sheet No. 39H Original Sheet No. 39H : Effective

(i) any other terms Transporter may reasonably require

to ensure the effectiveness of the notice; and

(j) updates, as soon as possible, about the status of

the operational variables that determine when a HUB

Advisory Notice will begin and end.

Such notices shall be issued to Shippers in order based

upon the net aggregate of each Shipper's outstanding

balance at the Waddington Receipt/Delivery Point beginning

with the largest balance. If in Transporter's sole

judgment, the OFO issuance resulted from low pressure

operating conditions on Transporter's system,

such OFOs shall be issued in order beginning with the

largest negative Loan Balance. If in Transporter's sole

judgment, the OFO issuance resulted from high-pressure

operating conditions on transporter's system, such OFOs

shall be issued in order beginning with the largest

positive Loan 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.

After Transporter has lifted the OFO it shall post a notice

on its website specifying the factors that caused the OFO

to be issued and then lifted as soon as such information is

available, to the extent such factors are known.

6.2 If Shipper fails to comply with a notice given in

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 negative Loan Balances or

the sale price of the gas less ten percent (10%) for

positive Loan 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.