ANR Pipeline Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 192 Third Revised Sheet No. 192 : Effective

Superseding: Sub Second Revised Sheet No. 192

General Terms and Conditions

(Continued)

35. REDUCTION OPTIONS

Shipper (other than an FTS-4 Shipper) may elect (1) at the time it

submits its initial request for Transportation Service pursuant to

Section 2 of these General Terms and Conditions; or (2) upon mutual

agreement during the term of the Service Agreement, one or more of the

following options to reduce its Contract Quantities during the term of

its Service Agreement(s) ("Reduction Option"). Shipper's eligibility

for a Reduction Option and Shipper's ability to exercise such

Reduction Option is subject to the terms and conditions specified

below that are applicable to the elected Reduction Option. For

purposes of this Section 35, the provisions of Section 22 of these

General Terms and Conditions shall not attach to Contract Quantities

that Shipper has reduced prior to the expiration of the term of the

Service Agreement.

35.1 Loss of Load

a. Eligibility. If (1) Shipper is a local distribution company

or municipality; (2) no facilities were constructed or

installed by Transporter to provide service under Shipper's

Service Agreement, the costs of which have not been

reimbursed; and (3) Shipper's Service Agreement has an

initial term of three (3) years or more, Shipper may

include in such Service Agreement an option to reduce its

Contract Quantities upon experiencing a loss of load. Loss

of load is defined as any of Shipper's customers with daily

requirements on facilities owned or operated by Shipper

exceeding 100 Dth/day either permanently ceasing gas-

consuming operations or scaling down such operations to

plant protection levels, or by-passing Shipper by directly

connecting to Transporter. Nothing in this Section 35.1

shall limit Shipper's ability to reduce contract demand in

the event of bypass pursuant to FERC's bypass policies in

effect at the time the proposed bypass occurs.

b. Notice and Certification. In order to qualify for a

reduction in its Contract Quantities under this Section 35.1,

Shipper must give Transporter written notice no more than

thirty (30) days after Shipper receives notice from its

customer of a Loss of Load, which notice shall state the

Contract Quantity reduction sought and the date that Shipper

anticipates it will lose the load. At the time of such

notice, Shipper must certify and provide supporting data

that:

(i) The load was actually served by the Shipper with gas

transported by Transporter as of the date that

Shipper's Service Agreement with Transporter became

effective.

(ii) The Contract Quantity reduction requested is equal to

or less than the actual load lost.