Michigan Gas Storage Company

First Revised Volume No 1

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

First Revised Sheet No. 8 First Revised Sheet No. 8 : Superseded

Superseding: Origianl Sheet No. 8

RATE SCHEDULE FT

FIRM TRANSPORTATION SERVICE

(continued)

c. Balancing Charge

To the extent that Shipper exceeds the operating tolerances set forth

in Section 3.1 (a) of the General Terms and Conditions, a Balancing

Rate per dth as shown on effective Tariff Sheet No. 4, multiplied by

the quantity of Gas in dth of the imbalance.

4.2 Overrun Service Charge

An Overrun Service Rate per dth as shown on effective tariff Sheet

No. 4 multiplied by the quantity of Gas in dth in excess of Shipper's

MDQ which Transporter delivered on behalf of Shipper at the Point of

Delivery during the Month.

4.3 Surcharges

Shipper shall pay all surcharges specified in Section 25 of the

General Terms and Conditions or which otherwise may be applicable to

service under this Rate Schedule from time to time.

5. REIMBURSEMENT OF FUEL USED FOR TRANSPORTATION

Shipper shall reimburse Transporter in-kind for fuel required in

transporting natural gas under this rate schedule in addition to the

payments made pursuant to Section 4 of this rate schedule. This

currently effective fuel reimbursement percentage is set forth on

tariff Sheet No 4.

6. MAXIMUM AND MINIMUM RATES

Transporter, at its sole discretion, may from time to time and at any

time selectively adjust any or all of the rates stated above

applicable to any individual Shipper; provided, however, that such

adjusted rate(s) shall not exceed the applicable Maximum Rate(s) nor

shall they be less than the Minimum Rate(s) set forth on Sheet No. 4

of this Tariff. Transporter shall make all filings required by FERC

Regulations with respect to any charges at less than the Maximum

Rate.

7. TRANSPORTATION IN EXCESS OF MAXIMUM DAILY QUANTITY

Shipper may request Transporter to transport Gas for Shipper on any

day in excess of Shipper's MDQ. Transporter may do so if, in its

sole judgement, it can do so without adverse effect on Transporter's

operations or in meeting its other service obligations.

All such transportation of excess quantities shall be paid for at the

Overrun Service Rate specified on the effective Tariff Sheet No. 4,

and shall include an allowance for fuel reimbursement in accordance

with Section 5.

8. MARKETING AFFILIATE REGULATIONS

Consistent with the General Terms and Conditions of this tariff,

Shipper shall also provide all information necessary for Michigan Gas

Storage Company to comply with Marketing Affiliate reporting

requirements, including those in 18 CFR Section 161.