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First Revised Sheet No. 27 First Revised Sheet No. 27 : Superseded

Superseding: Original Sheet No. 27

RATE SCHEDULE FS

FIRM STORAGE SERVICE

1. AVAILABILITY

This Rate Schedule is available to any party ("Buyer") for the

purchase of storage service from, Michigan Gas Storage Company

("MGS"), if the Buyer and MGS have executed a Service Agreement in

the form included in this tariff. Buyer must separately arrange

for necessary transportation to facilitate the storage service

provided hereunder.

The service provided under this Rate Schedule shall be provided

subject to the availability of capacity, the provisions of the

Service Agreement to be executed between Buyer and MGS, and the

conditions of Service specified in Section 3.

2. APPLICABILITY AND CHARACTER OF SERVICE

Service under this rate schedule shall include: the injection of

Gas into storage up to the Maximum Daily Injection Quantity

(MDIQ); the storage of such Gas, up to the Maximum Storage

Quantity (MSQ); and, the withdrawal of such Gas up to the Maximum

Daily Withdrawal Quantity (MDWQ)

3. CONDITIONS OF SERVICE

3.1 Request for Service

In order to request service pursuant to this Rate

Schedule, a potential Shipper shall make such request for

service by phone or facsimile, or in writing to

Transporter. Transporter will respond to such request

within ten (10) business days. If such request is

denied, Transporter will inform the requestor in writing

of such denial, and the reasons therefore.

3.2 Credit Worthiness

MGS shall not be required to commence service or to continue to

provide service under this Rate Schedule for any Buyer, who at

MGS's reasonable discretion, fails to demonstrate minimal credit

worthiness.

MGS may perform service for such Buyer under this Rate

Schedule if said Buyer, upon notice of noncredit

worthiness from MGS, (i) deposits and maintains a

prepayment of an amount equal to three (3) Months of the

cost of MGS's billings under its Service Agreement for

performing such service at the full MSQ or (ii) Buyer

furnishes within fifteen (15) Days good and sufficient

security, as determined reasonably by MGS of a continuing

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

billings under its Service Agreement for performing said

service at the full MSQ, for a period of three (3)

Months. MGS 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.