ANR Pipeline Company

Second Revised Volume No. 1

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

Second Revised Sheet No. 101C.01 Second Revised Sheet No. 101C.01 : Effective

Superseding: First Revised Sheet No. 101C.01

GENERAL TERMS AND CONDITIONS

(Continued)

(c) To the extent mainline capacity is created and if within the three (3) Business

Day period specified in Section 2.11(b) above, Shipper does not exercise its

right to subscribe for the firm capacity created by the waiver, any such

unsubscribed capacity shall be available for firm Transportation Service by other

Shipper(s) under any of Transporter's existing firm rate schedules for a term not

to exceed the term of the waiver, in accordance with the procedures set forth in

Sections 2 and 9 of these General Terms and Conditions and subject to the

provisions of Section 2.11(d) below.

(d) Any new agreement entered into pursuant to this Section 2.11 shall not be subject

to the Right of First Refusal pursuant to Section 22 of these General Terms and

Conditions, except to the extent that the term of Shipper's agreement is less than

the term of the applicable waiver established pursuant to Section 2.11(a) above,

and Shipper is otherwise eligible for a Right of First Refusal under Section 22 of

these General Terms and Conditions, in which event Shipper may only exercise its

Right of First Refusal to extend the applicable agreement for a term that does not

exceed the term of the applicable waiver.

2.12 Extension of Service Agreements.

(a) Transporter and Shipper may mutually agree to the early termination of one

or more Agreements in exchange for Shipper's extension of the use of all or

part of the underlying capacity under new terms. To the extent that

Transporter and Shipper have mutually agreed to this arrangement, Shipper

need not participate in an open season for the extension nor must the

underlying capacity be posted on Transporter's Internet site as

unsubscribed, available capacity prior to the extension.

(b) Prior to the expiration of the term of an Agreement, Transporter and

Shipper may mutually agree to an extension of the term of the Agreement

with respect to all or part of the underlying capacity (the exact terms of

which are to be negotiated on a case-by-case basis in a not unduly

discriminatory manner). If an Agreement has a regulatory Right of First

Refusal, the agreement to extend must be reached prior to initiation of the

Right of First Refusal procedure pursuant to Section 22.3 of these General

Terms and Conditions.

3. FACILITIES POLICY

3.1 Unless otherwise agreed to by the parties, Transporter shall not be required to

own, construct and install any facilities to perform any service requested by a

Shipper under this Tariff. In the event that Transporter determines that it

will construct facilities that will result in the expansion of its pipeline

system, Transporter shall offer the proposed expansion capacity to all Shippers

on a non-discriminatory basis. Further, in the event Transporter agrees to own,

construct and install facilities to perform services requested including, but

not limited to, hot tap, side valve, measurement, gas supply lateral lines,

looping and/or compression facilities, Transporter shall do so on a not unduly

discriminatory basis, and may require that Shipper reimburse Transporter for all

Transporter's costs associated therewith either on a lump sum or incremental fee

basis as agreed to by the parties. 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.