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

Superseding: First Revised Sheet No. 192C

General Terms and Conditions

(Continued)

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

reduction in its Contract Quantities under this Section

35.3, Shipper shall give Transporter ninety (90) days prior

written notice of the anticipated effective date of such

reduction. The notice shall state the Contract Quantity

reduction sought, the date of an anticipated final order

requiring unbundling, and the anticipated effective date of

such unbundling order. At the time of such notice,

Shipper must certify and provide supporting data that:

(i) The reduction requested is equal to the level of

stranded capacity on Transporter resulting from (1)

Shipper unbundling its distribution/transportation

functions from its merchant functions and (2) a net

decrease in Shipper's system sales requirements.

(ii) Shipper has used reasonable efforts to seek State

Commission approval of a mechanism that allows

Shipper the opportunity to recover the costs incurred

by Shipper under Shipper's Service Agreements and

that such efforts were unsuccessful prior to

exercising its Reduction Option under this Section

35.3.

c. Level of Reduction. Shipper may reduce its aggregate

Contract Quantities under all its Service Agreements by an

amount that qualifies under the above-specifications;

provided, however, that (1) if a Shipper customer(s) who,

as a result of unbundling, is no longer a Shipper

customer(s) and such Shipper customer(s) was also 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 such customer(s) that Shipper holds on Transporter

and such other natural gas pipelines; and (2) unless

otherwise agreed, if more than one Service Agreement on

Transporter is used to serve the system sales requirements

no longer served by Shipper as a result of unbundling,

Shipper shall reduce its Contract Quantities on Transporter

pro rata based on the MDQ of each Service Agreement,

subject to the requirements of subsection (d) below.

d. Storage and Related Transportation. If Shipper has storage

and related transportation contract(s) that contain

contract reduction options under this Section 35.3,

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. Such reduction shall take effect on the

later of (i) the effective date of unbundling or the date

of a final order requiring unbundling; and (ii) the first

calendar day of the month following the 90th day after

Shipper's notice of the anticipated effective date of the

reduction.