Millennium Pipeline Company, L. L. C.

Original Volume No. 1

Effective Date: 12/22/2008, Docket: CP98-150-011, Status: Effective

Original Sheet No. 359A Original Sheet No. 359A

GENERAL TERMS AND CONDITIONS

(Continued)

(a) Current Retainage Percentage Component. In each Annual and

Periodic RAM Filing, Transporter shall calculate the Current Retainage

Percentage by (i) estimating the total company-use, lost, and unaccounted-for

quantities required during the 12-month period commencing with the effective

date of Transporter's RAM filing (Current Retainage Quantities) and (ii)

dividing that volumetric figure by the total quantities estimated by

Transporter to flow under the Applicable Rate Schedules which are the subject

to that particular retainage percentage during the same 12-month period

commencing with the effective date of the RAM filing (Current Rate Schedule

Quantities).

(b) Unrecovered Retainage Percentage Component. In each Annual RAM

Filing, Transporter shall calculate the Unrecovered Retainage Percentage by:

(i) determining the company-use, lost, and unaccounted- for quantities for the

preceding calendar year (Preceding Annual Period); (ii) subtracting the

Retainage quantities retained by Transporter during that Preceding Annual

Period; and (iii) dividing the result (the Unrecovered Retainage Quantities),

whether positive or negative, by the Current Rate Schedule Quantities for the

12-month period commencing on the effective date of that Annual RAM filing.

(i) the Current Retainage Percentage established in that filing, as calculated

in accordance with paragraph (a) above, and (ii) the Unrecovered Retainage

Percentage established in the currently effective Annual RAM Filing (whether a

positive figure reflecting an underrecovery or a negative figure reflecting an

overrecovery), as calculated in accordance with paragraph (b) above. The

resulting total Retainage percentage for forward-haul transportation and back-

haul transportation shall be effective until the effective date of

Transporter's next succeeding RAM Filing.

35.5 Termination.

(a) If the provisions of this Section are terminated or otherwise

rendered inapplicable (termination), Shippers under the Applicable Rate

Schedules from the effective date of Transporter's most recent RAM filing

through the date of termination (the Termination Period) shall remain liable

for any Unrecovered Retainage Quantities. Transporter shall remain liable to

such Shippers for any excess quantities retained.

(b) Any positive or negative balance in Transporter's Unrecovered

Retainage Quantities account at the date of termination (i) shall be allocated

to any successor services offered by Transporter, or (ii) if no successor

services are offered by Transporter, shall be charged to Shippers under the

Applicable Rate Schedules based on the actual quantities that flowed during

the Termination Period.