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First Revised Sheet No. 15 First Revised Sheet No. 15 : Superseded

Superseding: Origianl Sheet No. 15

RATE SCHEDULE IT

INTERRUPTIBLE TRANSPORTATION SERVICE

(continued)

b. 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.

The 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

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

the F.E.R.C. 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 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.