Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

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

Third Revised Sheet No.121 Third Revised Sheet No.121 : Effective

Superseding: Second Revised Sheet No. 121

32. NEGOTIATED RATES

32.1 PRECONDITIONS TO NEGOTIATED RATES

Rates to be charged by Transporter for service to any

Shipper under Rate Schedule RTS, ITS, or HUB may deviate in

either form or level or both from the applicable maximum

rate level in this Tariff, subject to the following

provisions:

(a) Transporter and Shipper have

executed a valid Gas Transportation Contract containing

therein a specific mutual understanding that Negotiated

Rate(s) or a Negotiated Rate Formula will apply to service

for that Shipper, and the specific terms of that

understanding have been set forth on

Schedule 3 of that Gas Transportation Contract;

(b) At the time of execution of the Gas

Transportation Contract, which first provides for the

applicability to Shipper of the Negotiated Rate(s) or

Negotiated Rate Formula, service was available pursuant to

the terms and conditions (not modified by this Section 32)

of Rate Schedule RTS, ITS, or HUB of this Tariff, as

applicable; and

which Transporter commences service at such a Negotiated

Rate or Negotiated Rate Formula (or if the day on which

Transporter commences service is not a Business Day, then

no later than the next Business Day after Transporter

commences service), Transporter will file a tariff sheet

advising the Commission of such Negotiated Rate or

Negotiated Rate Formula, stating the name of Shipper, the

type of service, the Receipt and Delivery

Point(s) applicable to the service, the volume of the gas

to be transported, any other charges, and specifying

either: (i) the specific Negotiated Rate included in such

Gas Transportation Contract; or (ii) the Negotiated Rate

Formula included in such Gas Transportation Contract with

sufficient specificity such that the rate in effect from

time to time can be readily calculated. The tariff sheet

must also incorporate a statement

that the Gas Transportation Contract does not deviate from

the form of Service Agreement in any material respect.