ANR Pipeline Company

Second Revised Volume No. 1

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

Ninth Revised Sheet No. 92 Ninth Revised Sheet No. 92 : Effective

Superseding: Substitute Eighth Revised Sheet No. 92

GENERAL TERMS AND CONDITIONS

(Continued)

1.64 The terms "Transportation" and "Transportation Service(s)" shall mean (a) storage or

(b) transportation of Gas by either forward haul, exchange or Backhaul or any

combination thereof which includes the use of facilities functionalized on

Transporter's books as transmission and/or storage.

1.65 The term "Transporter" shall mean ANR Pipeline Company.

1.66 The term "Transporter's Pipeline System" shall mean those facilities of Transporter

which are Mainline Area Facilities, Southwest Area Facilities or Southeast Area

Facilities.

1.67 The term "Transporter's Use" shall mean the quantity of Gas required by Transporter

for (1) compressor fuel and (2) lost-and-unaccounted for ("L&U") Gas for service

under each Agreement, and shall be equal to the Transporter's Use (%) under each such

Agreement times Receipt Point quantities tendered to Transporter.

1.67A The term "Transporter's EPC" shall mean the dollar amount required by Transporter to

recover the cost of electric power purchased, including surcharges, by or for

Transporter for use in the operation of electric powered compressor units, and shall

be equal to the EPC Charge times Delivery Point quantities.

1.68 The term "Transporter's Use (%)" shall mean the applicable percentage of Transporter's

Use, as specified in the Agreement, which shall be an allocable amount of Transporter's

Use. The term "EPC Charge" shall mean the rates in $ per Dth applicable to

Transporter's rate schedules, and shall be equal to an allocable amount of Transporter's

EPC. The Transporter's Use (%) and the EPC Charge shall be calculated by Transporter by

appropriate engineering principles and shall include consideration of the distance of

Transportation, provided, however, that no Transporter's Use (%) or EPC Charge shall be

assessed on Backhaul Transportation. Except as otherwise noted herein and in Section 37

of these General Terms and Conditions, the determination of Transporter's Use (%) and

EPC Charge in each of Transporter's annual redetermination filings, shall be based upon

the transactional throughput methodology set forth in Transporter's December 4, 1997

filing in Docket No. TM97-2-48-001 as accepted by Order of the Commission dated December

31, 1997, as further amended in the December 26, 2001 Stipulation and Agreement in

Docket No. RP01-259-000. For purposes of computing the Current Fuel Use (%) and the

Annual Transporter's Use Adjustment (%) pursuant to Section 37 of these General Terms

and Conditions, the fuel use associated with the CenterPoint Energy Gas Transmission

Company ("CenterPoint") (formerly Arkla) transportation contract described in Section 29

of these General Terms and Conditions ("CenterPoint Contract") shall be allocated pro

rata between the Southeast and Southwest Mainline Areas based upon the volumes delivered

under the contract to each respective area. For purposes of computing the Current Fuel

Use (%), the Annual Transporter's Use Adjustment (%), the Current EPC Charge and the

Annual EPC Charge Adjustment pursuant to Section 37 of these General Terms and

Conditions, the transactional throughput of the respective Mainline Area Facilities

shall be adjusted based upon the direction of flow of the net physical throughput under

the CenterPoint Contract such that the transactional throughput of the Mainline Area

Facilities with the net physical increase in volume shall be increased by such net

physical increase and an offsetting decrease in the transactional throughput shall be

made to the opposite Mainline Area Facilities. Transporter will include in each of its

annual filings pursuant to Section 37 of these General Terms and Conditions information

supporting the allocation of fuel use and direction of flow of the net physical

throughput between Transporter's Southeast and Southwest Mainline Areas under the

CenterPoint Contract.

1.69 The term "Winter Period" shall mean the period from November 1 of each calendar year

through March 31 of the following calendar year.