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First Revised Sheet No. 28 First Revised Sheet No. 28 : Superseded

Superseding: Original Sheet No. 28

RATE SCHEDULE FS

FIRM STORAGE SERVICE

(continued)

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 modifications that may be imposed and/or authorized by

the FERC, each month Buyer shall, where applicable, pay MGS the

following amounts:

4.1 Storage Charges

a. Capacity Charge

A capacity rate per dth as shown on effective Tariff

Sheet No. 4, multiplied by 1/12th of the Shipper's MSQ.

b. Deliverability Charge

A deliverability rate per dth as shown on effective

Tariff Sheet No. 4, multiplied by Shipper's MDWQ.

c. Injection Charge

A injection rate per dth as shown on effective Tariff

Sheet No. 4, multiplied by the quantity of Gas injected

into Storage by MGS on behalf of Buyer.

d. Withdrawal Charge

A withdrawal rate as shown on effective Tariff Sheet No.

4, multiplied by the quantity of Gas withdrawn from

Storage by MGS on behalf of Buyer.

4.2 Overrun Service Charge

To the extent Buyer exceeds the MSQ, specified in the

executed Service Agreement, Buyer shall be subject to an

appropriate overrun service charge as provided for on

Tariff Sheet No. 4. In the event that Buyer exceeds

the MDIQ or MDWQ specified in the Service Agreement,

Buyer shall be subject to the applicable injection rate

per dth or withdrawal rate per dth as shown on effective

Tariff Sheet No. 4.

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

Buyer shall reimburse MGS in-kind for fuel required in providing

service under this rate schedule in addition to the payments made

pursuant to Section 4 of this rate schedule. This currently

effective fuel reimbursement percentages are set forth on Tariff

Sheet No. 4.

6. CONDITIONS OF INJECTION AND WITHDRAWAL

6.1 Maximum Daily Injection Quantity

The MDIQ may not exceed the MSQ divided by 200.