Michigan Gas Storage Company

First Revised Volume No 1

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Effective Date: 11/01/1993, Docket: RS92- 7-001, Status: Effective

Original Sheet No. 43 Original Sheet No. 43 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

3.12 Termination of Service Agreement

If a Shipper that has executed a Service Agreement for

service fails, on the date service is to commence or

fifteen (15) Days after the Shipper executes the

Agreement or the completion of construction of any

necessary facilities (subject to Article 15 of these

General Terms and Conditions) or the issuance of any

necessary certificate authorization (whichever is

latest), to nominate pursuant to Section 3.3 of these

General Terms and Conditions any quantity of gas for

transportation and/or storage or fails to tender any gas

for transportation and/or storage, the Shipper's Service

Agreement shall be terminated and the Shipper's request

for service shall be deemed null and void; provided,

however, that the Shipper's Service Agreement shall not

be terminated nor shall the Shipper's request for service

be deemed null and void if the Shipper's failure to

nominate or tender is caused by an event of force majeure

as defined in Section 9 of these General Terms and

Conditions or by Transporter's inability to make capacity

available.

4. MEASUREMENT

4.1 (a) The volume of Gas delivered hereunder shall be

measured by one of the following methods:

(i) An orifice meter, designed, installed, maintained and

operated as recommended in the latest issue of

American National Standard ANSI/API 2530 (American

Gas Association Gas Measurement Report No.3),

entitled "Orifice Metering of Natural Gas and Other

Related Hydrocarbon Fluids," as such publication may

be revised from time to time (hereinafter referred to

as "AGA Report No. 3"); or

(ii) A turbine meter, designed, installed, maintained and

operated as recommended in the latest issue of

American Gas Association Transmission Measurement

Committee Report No. 7, entitled "Measurement of Fuel

Gas by Turbine Meters," as such publication may be

revised from time to time (hereinafter referred to as

"AGA Report No. 7"); or

(iii) A positive displacement meter, installed and operated

in accordance with generally accepted industry

practices.

4.1(b) Auxiliary measuring equipment, if installed,

shall be installed, maintained and operated

in accordance with generally accepted

industry practices.

4.2(a) The volume of Gas delivered hereunder shall

be calculated by means of an electronic flow

computer or by the processing of meter

charts, but in either case in the following

manner: