ANR Pipeline Company

Second Revised Volume No. 1

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

Seventh Revised Sheet No. 40 Seventh Revised Sheet No. 40 : Effective

Superseding: Sixth Revised Sheet No. 40

RATE SCHEDULE FTS-2

Firm Transportation Service

(Continued)

3.2 Commodity Charges

(a) A Commodity Rate, as stated on Sheet No. 8 and, if

applicable, Sheet No. 68G, shall be paid for each Dekatherm

of Gas Delivered Hereunder to or on behalf of Shipper for

each Nomination Route utilized during the Month.

(b) Other Applicable Charges or Surcharges. All applicable

reservation and volumetric charges or surcharges,

including but not limited to those charges under Sections

24 and 29 of the General Terms and Conditions of this

Tariff, for each Dekatherm of MDQ, or Gas Delivered

Hereunder, as applicable. Such charges or surcharges are

shown on Sheet Nos. 17 and 18.

3.3 Daily Scheduling Penalties. Only Shippers identified in Section

14.1(a)(3)(iii) of the General Terms and Conditions of this

Tariff, may be subject to daily scheduling penalties, and only

on each Dekatherm of the quantities of variance set forth

therein that exceeds the Swing Percentage. The rate for any

such daily scheduling penalty per Dekatherm shall be the highest

applicable Rate Schedule ITS Maximum Rate to that Delivery

Point.

3.4 Authorized Overrun Service. Transporter may authorize Shipper

to take hereunder daily overrun quantities of Gas to the extent

that, in the sole judgment of Transporter, the delivery capacity

of Transporter's Pipeline System will permit such delivery

without jeopardizing the ability of Transporter to meet all of

its other firm service delivery obligations. The term

"Authorized Daily Overrun Quantity" shall mean the quantity of

Gas which is authorized and delivered by Transporter during any

one Day in excess of Shipper's Primary Route MDQ. Any request

for service under this Section 3.4 must be made by Shipper

pursuant to a separate nomination for Authorized Daily Overrun

Quantity Gas in accordance with Section 6.1(a) or 6.2(a) of the

General Terms and Conditions of this Tariff, provided, however,

a separate nomination is not required if the overrun is being

delivered under any service associated with the operation of

Transporter's Rate Schedule NNS or MBS and has been authorized

and allocated to Shipper pursuant to Section 14.1(a)(1),

14.1(a)(3) or 14.1(c) of the General Terms and Conditions of

this Tariff. Shipper shall pay a commodity charge for each

Dekatherm of Authorized Daily Overrun Quantity equal to the

applicable incremental maximum Reservation Rates times 12 then

dividing the result by 365.