Michigan Gas Storage Company

First Revised Volume No 1

Effective Date: 11/02/1998, Docket: RP99- 70-003, Status: Effective

Original Sheet No. 41B Original Sheet No. 41B : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

The Intraday 1 Nomination Cycle: 10:00 am for nominations leaving

control of the nominating party; 10:15 am for receipt of nominations

by the transporter; 10:30 am to send Quick Response; 1:00 pm for

receipt of completed confirmations by transporter from upstream and

downstream connected parties; 2:00 pm for Transportation Service

Provider to provide scheduled quantities to affected shippers and

point operators, and to provide scheduled quantities to bumped parties

(notice to bumped parties), (central clock time on the gas day).

Scheduled quantities resulting from Intraday 1 Nominations should be

effective at 5:00 pm on gas day. The Intraday 2 Nomination Cycle:

5:00 pm for nominations leaving control of the nominating party; 5:15

pm for receipt of nominations by the transporter; 5:30 pm to send

Quick Response; 8:00 pm for receipt of completed confirmations by

transporter from upstream and downstream connected parties; 9:00 pm

for Transportation Service Provider to provide scheduled quantities to

affected shippers and point operators (central clock time on the gas

day). Scheduled quantities resulting from Intraday 2 Nominations

should be effective at 9:00 pm on gas day. Bumping is not allowed

during the Intraday 2 Nomination Cycle.

Transporter shall give scheduling priority to an intra-day nomination

submitted by a firm shipper over nominated and scheduled volumes for

interruptible shippers, provided that the firm shipper's intra-day

nomination is to be effective by 5:00 PM of the gas day in question.

Bumping that affects transactions on multiple Transportation Service

Providers should occur at grid-wide synchronization times only. When

an interruptible shipper's scheduled volumes are to be reduced as a

result of an intra-day nomination by a firm shipper, the interruptible

shipper shall be provided with advance notice of such reduction by

telephone or facsimile.

3.5 Delivery of Gas

Based upon the daily quantity nominated, the quantities actually

received, and after making adjustment for any prior imbalance in

deliveries, MGS shall daily make delivery, to the extent practicable,

of Equivalent Quantities of Gas at the Point of Delivery.

3.6 Hourly Variation

Deliveries shall be made at uniform hourly rates to the extent

practicable.

3.7 Limitation on Obligation

(a) Should the quantities of Gas received by Transporter at the Point

of Receipt exceed the Maximum Daily