Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 07/31/1995, Docket: RP95-406-000, Status: Effective

First Revised Sheet No. 86 First Revised Sheet No. 86 : Effective

Superseding: ORIGINAL SHEET NO. 86

GENERAL TERMS AND CONDITIONS (Continued)

Section 21, except in the event that such failure is caused

by the negligence or intentional misconduct of Transporter.

Transporter shall be obligated to refund demand charges

collected from firm shippers applicable to days in which firm

service is interrupted, if and to the extent that Transporter

is reimbursed for such demand charges through insurance

proceeds and such shipper is not recompensed for such demand

charges through any other primary insurance. Such refunds

shall be computed by allocating to each firm shipper for which

service was interrupted a pro rata share of the attributable

insurance proceeds received by Transporter based on the

proportion that the eligible amount of each such shipper's

affected demand charge payments bears to the sum of the

eligible amounts of all such shippers' affected demand charge

payments. The affected demand charge payments for each shipper

shall be computed by multiplying the daily applicable

Transportation Demand Rate by the quantity of gas not delivered

by reason of the interruption in firm service, not to exceed

such shipper's Maximum Input Quantity. The eligible amount of

such affected demand charge payments shall be the portion of

the affected demand charge payments for which the shipper is

not eligible to be recompensed through other primary insurance.

For purposes of this paragraph, the applicable daily

Transportation Demand Rate shall be determined by multiplying

the Transportation Demand Rate applicable to the service that

was interrupted by twelve (12) and dividing the product by 365.

Nothing herein shall obligate a firm shipper to maintain

primary insurance which recompenses it, in whole or in part,

for demand charges paid on days when Transporter interrupts

service.

21.3 Unavailability Of Firm Capacity. In the event

Transporter is unable, wholly or in part, to make capacity

available for transportation of the Maximum Input Quantities

to which all Shippers are entitled under their Gas

Transportation Contracts with Transporter on any day, then

Shipper shall be entitled to such proportion of the total

impaired transportation capacity as the sum of Shipper's

Maximum Input Quantities for firm transportation service