ANR Pipeline Company

Second Revised Volume No. 1

Effective Date: 11/01/2006, Docket: RP06-613-000, Status: Effective

Third Revised Sheet No. 38 Third Revised Sheet No. 38 : Effective

Superseding: Substitute Second Revised Sheet No. 38

RATE SCHEDULE FTS-2

Firm Transportation Service

(Continued)

9 of the General Terms and Conditions of this Tariff. Such

reduction(s) shall be made on the date(s) specified in such

notification, which date(s) shall be no less than thirty (30)

Days after the date of such notification. Such notified

Shipper(s) under this Rate Schedule may, within said thirty

(30) Days, convert that portion of service provided under this

Rate Schedule which is equal to such reduction, to service

under Rate Schedule FTS-1, by executing an Agreement under Rate

Schedule FTS-1, which conversion shall have priority over the

pending request for service under Rate Schedule FTS-1 which

caused such notification, assuming such Rate Schedule FTS-2

Shipper agrees to a service under Rate Schedule FTS-1 that will

have a NPV that equals or exceeds the NPV of the Rate Schedule

FTS-1 pending request, or may convert that portion of service

provided under this Rate Schedule which is equal to such

reduction to service under Rate Schedule ITS by executing an

Agreement for such service, or may terminate any remaining

portion of service provided under this Rate Schedule.

Conversions to Rate Schedule FTS-1 or ITS service shall

maintain the original priority date under this Rate Schedule,

for purposes of priority of service pursuant to Section 9 of

the General Terms and Conditions of this Tariff.

3. CHARGES

Each Month Shipper shall pay to Transporter the following charges:

3.1 Reservation Charges.

(a) For each Dekatherm of MDQ, the sum of the applicable

Reservation Rate(s), as stated on Sheet No. 8, for each

Pooling Area or Mainline Segment (together, "Rate

Segment(s)") traversed by the Primary Route designated

for such MDQ.

(b) If, in any Month, Shipper nominates quantities at

Secondary Receipt Points or Secondary Delivery Points,

and all of such Secondary Points are within Rate

Segment(s) for which capacity is reserved pursuant to

Section 3.1(a), above, no Reservation Charges associated

with the use of additional Rate Segment(s) shall be

applicable.