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First Revised Sheet No. 52 First Revised Sheet No. 52 : Superseded

Superseding: Original Sheet No. 52

GENERAL TERMS AND CONDITIONS

(continued)

shall not require the settlement of strikes or lockouts

or controversies with landowners involving rights of way

by acceding to the demands of the opposing party when

such course is inadvisable in the discretion of the party

having difficulty.

9.3 Limitations

Such force majeure affecting the performance hereunder by

either Transporter or Shipper, however, shall not relieve

such party of liability in the event of concurring

negligence or in the event of failure to use due

diligence to remedy the situation and to remove the cause

in an adequate manner and with all reasonable dispatch,

nor shall such causes or contingencies affecting such

performance relieve either party from its obligations to

make payments as then due determined hereunder.

10. LINE PACK

Transporter shall have the right, but not the obligation, to

provide sufficient quantities of Gas to initially pack

Transporter's line by purchase of such Gas from Shipper. If

Transporter exercises its right to purchase Gas from Shipper,

Transporter shall reimburse Shipper for its delivered cost of such

Gas.

11. LATERAL FACILITIES POLICY

Transporter's Lateral Facilities Policy, is as follows:

(a) Transporter is engaged in the business of transporting

Gas in interstate commerce.

(b) Transporter shall not be required to own, build, or

contribute to the cost of building any lateral

facilities. In the event that Transporter agrees to

own, build or contribute to the cost of building any

lateral facilities, it shall do so on a not unduly

discriminatory basis, and may require the reimbursement

of costs associated therewith as agreed to by the

parties.

(c) Nothing in this policy statement shall require

Transporter to file an application for a certificate of

public convenience and necessity under Section 7(c) of

the Natural Gas Act. Nothing in this policy statement,

further, shall prevent Transporter from contesting an

application for service filed pursuant to Section 7(a) of

the Natural Gas Act. Transporter reserves the right to

seek a waiver of the policy set forth herein, for good

cause shown, during any proceeding before the Commission

instituted under Section 7 of the Natural Gas Act.