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

Superseding: First Revised Sheet No. 192D

General Terms and Conditions

(Continued)

35.4 Sole Supply Customer

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

company or municipality; (2) at least 95 percent of

Shipper's citygate transportation service requirements

are served by Transporter at the time its Service

Agreement is executed (a "Sole Supply Customer"); (3) 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 (4) such

Service Agreement has an initial term of five (5) years

or more, Shipper may include in its Service Agreement an

option to reduce its Contract Quantities.

b. Notice. In order to qualify for a reduction in its

Contract Quantities under this Section 35.4, Shipper

shall give Transporter a minimum of ninety (90) days

prior written notice of the reduction in Contract

Quantities sought, and the effective date of such

reduction.

c. Level of Reduction. Shipper may reduce its aggregate

Contract Quantities under all its Service Agreements on

Transporter, provided that in any one year, Shipper may

not reduce the Contract Quantities under any individual

Service Agreement by more than fifteen percent (15%) and

no more than fifty-seven percent (57%) over the term of

the individual Service Agreement. If Shipper does not

exercise its right to reduce an individual Service

Agreement by 15% in any year, any rights not exercised in

that year may be carried forward to any one or more

subsequent years, up to the 57% cap.

d. Storage and Related Transportation. If Shipper has

storage and related transportation contracts that contain

reduction options under this Section 35.4, 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 following

the later of (i) ninety (90) days of Shipper's notice

that it desires to exercise this Reduction Option; and

(ii) the date the reduction is sought in the notice.

35.5 Other Reduction Options

Transporter may grant, on a not unduly-discriminatory basis,

requests for reduction options that otherwise do not meet the

requirements of this Section 35, provided that the request

will be subjected to an open season process in accordance with

Section 2.10 (i) of these General Terms and Conditions and the

bid methodology will include a net present value analysis.