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. 192B Second Revised Sheet No. 192B : Effective

Superseding: First Revised Sheet No. 192B

General Terms and Conditions

(Continued)

c. Level of Reduction. In the event of a permanent major

production scale-down in the plant's output, Shipper may only

reduce its Contract Quantities by a percentage equal to the

percentage that the scale down represents to the total plant

output. In the event of a plant closing or sale, Shipper may

reduce its aggregate Contract Quantities under all its Service

Agreements that serve the plant by an amount up to the daily

contract quantity delivered to the plant. Provided, however,

that (1) if Shipper's plant is served by other natural gas

pipelines in addition to Transporter, Shipper may only reduce

its Contract Quantities on Transporter by an amount that is pro

rata on the basis of the respective levels of firm

Transportation Service used to serve the plant that Shipper

holds on Transporter and other such natural gas pipelines; and

(2) if more than one Service Agreement on Transporter serves

such plant, any such reduction shall be applied first to the

Contract Quantities under the Service Agreement with the

shortest remaining contract term, unless otherwise agreed.

d. Storage and Related Transportation. If Shipper has storage and

related transportation contract(s) that contain contract

reduction options under this Section 35.2, Contract Quantities

under the storage and related firm transportation services

shall be proportionally reduced so that storage service

quantities, including storage capacity and deliverability

quantities, and related transportation service quantities

remain proportionately the same.

e. Effective Date. Reductions under this section shall take

effect on the first calendar day of the month immediately

following the later of (i) ninety (90) days after the date of

Shipper's notice that it desires to exercise this Reduction

Option; and (ii) the effective date of the plant's permanent

scale-down, closing or sale.

35.3 Regulatory Unbundling Order

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

under the direct regulation of a state regulatory or

legislative body ("State Commission"); (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 in the event Shipper is required by a final order of

the State Commission to unbundle its merchant and

transportation functions, and such governmental body does not

approve a mechanism which provides Shipper the opportunity to

recover fully all costs incurred by Shipper under Shipper's

Service Agreements.