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. 187B Second Revised Sheet No. 187B : Effective

Superseding: Substitute First Revised Sheet No. 187B

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Determination of Deferred Transportation Cost Adjustment:

The amount of each Deferred Transportation Cost Adjustment

shall be equal to the balance in Transporter's Deferred

Transportation Cost Account three (3) Months prior to the

May 1 effective date, plus estimates for the subsequent

three (3) Month period, plus carrying charges calculated

pursuant to Section 29(e), below. The recovery period shall

be over the twelve (12) Months beginning with each May 1

effective date. The Deferred Transportation Cost Adjustment

applicable to each Rate Schedule shall be calculated by

Transporter based upon the same rate design method and

design volumes underlying its currently effective rates.

(d) Crediting of Refunds Received, Debiting of Surcharges:

Commencing with the effective date of this Section 29,

Transporter shall credit all refunds received for its

Qualifying Transportation Costs attributable to periods

after the effective date hereof to its Deferred

Transportation Cost Account. Commencing with the effective

date of this Section 29, Transporter shall similarly charge

for any retroactive surcharge or rate adjustments of

eligible contracts defined under Qualifying Transportation

Costs.

(e) Carrying Charges:

Each Month Transporter shall credit or debit its Deferred

Transportation Account, as appropriate, with carrying

charges. Carrying charges shall be computed by separate

demand and commodity components. Carrying charges shall be

calculated in a manner consistent with the procedures set

forth in Section 154.501 of the Commission's Regulations.