Michigan Gas Storage Company

First Revised Volume No 1

Effective Date: 01/01/1997, Docket: RP96-290-000, Status: Effective

First Revised Sheet No. 7 First Revised Sheet No. 7 : Superseded

Superseding: Original Sheet No. 7

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

(continued)

service under this Rate Schedule for any Shipper, who, at

Transporter's reasonable discretion, fails to demonstrate minimal

credit worthiness.

Transporter may perform service for such Shipper under this Rate

Schedule if said Shipper, upon notice of noncredit worthiness from

Transporter, (i) deposits and maintains a prepayment of an amount

equal to three (3) Months of the cost of Transporter's billings under

its Service Agreement for performing such service at the full MDQ or

(ii) Shipper furnishes within fifteen (15) Days good and sufficient

security, as determined reasonably by Transporter, of a continuing

nature and in an amount equal to the cost of Transporter's billings

under its Service Agreement for performing said service at the full

MDQ for a period of three (3) Months. Transporter may, without

waiving any rights or remedies it may have, suspend further service

until such security is received after any necessary authorizations by

any regulatory bodies having jurisdiction.

3.3 General Terms and Conditions

The General Terms and Conditions of this Tariff are applicable to

this Rate Schedule.

4. RATES AND CHARGES

Subject to such modifications as may be imposed and/or authorized by

the FERC, each Month Shipper shall, where applicable, pay Transporter

the following amounts:

4.1 Firm Service

a. Reservation Charge

A Reservation Rate per dth as shown on effective tariff Sheet No. 4

multiplied by Shipper's MDQ.

b. Usage Charge

A Usage Rate per dth as shown on effective tariff Sheet No. 4

multiplied by the quantity of Gas in dth which Transporter delivered

to or on behalf of Shipper at the Point of Delivery during the Month.