ANR Pipeline Company

Second Revised Volume No. 1

Effective Date: 05/01/2000, Docket: RP00- 30-000, Status: Suspended

Second Revised Sheet No. 164 Second Revised Sheet No. 164 : Suspended

Superseding: Substitute First Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS

(Continued)

25.3 Applicability of the GRI Surcharges: The GRI surcharges shall

consist of reservation and commodity surcharges applicable to

Transporter's rates and shall be applied to GRI Funding Services,

provided that to the extent that the revenue recovered by

Transporter for any service is less than the revenue that would

otherwise be recoverable by applying Transporter's maximum

applicable rates, plus all other maximum applicable surcharges, the

GRI surcharges will be deemed to have been discounted first, before

Transporter's rates or other surcharges are discounted. The GRI

surcharges shall be as follows:

(a) Firm Services with multi-part rates under Rate Schedules ETS,

FTS-1, FTS-2, FTS-3 and if applicable, Rate Schedule FSS of

Volume No. 1 and Firm Volume No. 2 services. In its filing to

implement the GRI funding mechanism pursuant to FERC Opinion

No. 384, Transporter shall establish a composite load factor

percentage for all existing firm customers. In the case of new

firm customers for which no load factor has been established,

Transporter shall determine each new customer's load factor and

assess the appropriate surcharge for each month during the

first twelve months of service based upon the actual throughput

for each prior month of service until a 12-month history is

established.

(1) Reservation Surcharge.

(i) Where the composite load factor for all firm services

of a particular customer is greater than fifty

percent, the GRI Reservation Surcharge shall apply as

set forth on Sheet No. 17.

(ii) Where the composite load factor for all firm services

of a particular customer is fifty percent or less,

the GRI Reservation Surcharge shall apply as set

forth on Sheet No. 17.

(2) Commodity Surcharge. A Commodity Surcharge as set forth

on Sheet No. 17 shall be paid for each Dekatherm delivered

to or on behalf of Shipper.

(b) Firm Services for Small Shippers with one-part rates under Rate

Schedules STS and the Small Shipper Service Option under Rate

Schedules ETS, FTS-3 and FTS-1. A Commodity Surcharge as set

forth on Sheet No. 17 shall be paid for each Dekatherm

delivered to or on behalf of Shipper.