ANR Pipeline Company

Second Revised Volume No. 1

Effective Date: 11/01/1996, Docket: RP96-403-002, Status: Effective

2nd Sub Second Revised Sheet No. 187.1 2nd Sub Second Revised Sheet No. 187.1 : Superseded

Superseding: First Revised Sheet No. 187.1

GENERAL TERMS AND CONDITIONS

(Continued)

(b) Attribution of Order No. 636 Revenues Recovered from Rate

Schedule ITS and Rate Schedule FTS-2 Overrun Shippers.

Transporter shall be deemed to have received revenues

attributable to Rate Schedule ITS and Rate Schedule FTS-2

overrun in the following order: (1) Residual Pricing

Differential Costs/Revenues set forth in Section 28.1

(b)(1)(iv) of these General Terms and Conditions; (2)

Residual Eligible Costs set forth in Section 28.1 (a)(1)(v)

of these General Terms and Conditions; (3) Residual Dakota

Costs set forth in Section 28.1 (c)(3) of these General Terms

and Conditions; (4) Rate Schedule ITS and Rate Schedule FTS-2

overrun base tariff rates, less that portion of such rates

comprised of the sum of Residual costs referenced in

paragraphs (1), (2) and (3) of this Section 28.6 (b), and

other charges, surcharges or rate adjustments in effect from

time to time; and (5) the GRI surcharge set forth in Section

25 of these General Terms and Conditions; provided, however,

that for all Rate Schedule ITS and Rate Schedule FTS-2

overrun Service Agreements entered into by Transporter prior

to November 1, 1993, pursuant to which Transporter agreed not

to collect certain surcharges, then Transporter's agreement

shall govern the attribution of discounts.

calculate Order No. 636 revenues in accordance with the

provisions of this Section 28 by taking into account the

order of revenue collection set forth in Sections 28.6(a)

or 28.6(b), whichever is applicable.

29. DEFERRED TRANSPORTATION COST ADJUSTMENT PROVISION

(a) Purpose. This Section establishes the mechanism ("Deferred

Transportation Cost Adjustment") for the passthrough by

Transporter of the over/underrecovery of costs related to

FERC Account No. 858 capacity that Transporter is authorized

pursuant to Commission orders to maintain or replace, as

defined in Section 29(a)(1) ("Qualifying Transportation

Costs"). The base rates and charges applicable to all Rate

Schedules shall be adjusted, where applicable, by Transporter

on an annual basis to reflect an adjustment of Qualifying

Transportation Costs