Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 06/12/2005, Docket: RP05-341-000, Status: Effective

Fourth Revised Sheet No. 266B Fourth Revised Sheet No. 266B : Effective

Superseding: Third Revised Sheet No. 266B

GENERAL TERMS AND CONDITIONS

22. DISPOSITION OF EXCESS GAS

22.1 Cash-out Gas

Company may make interruptible sales of gas from time-to-time pursuant to the

cash-out procedures of Section 6 of Rate Schedules LMS-MA and LMS-PA. Further,

under the cash-out procedures of the LMS Rate Schedules LMS-MA and LMS-PA, and

in order to alleviate conditions that threaten the integrity of its system,

Company may periodically acquire quantities of gas that are excess to system

needs. Company shall have the right to make interruptible sales of such excess

gas and gas for cash-outs from time to time at system receipt points pursuant

to the terms of the blanket certificate of public convenience and necessity

granted to Company pursuant to 18 C.F.R. Section 284.284(6) and Order No. 636

of the Federal Energy Regulatory Commission. Such sales shall be made under

rates, terms and conditions mutually agreed upon between Company and

purchasers, provided, however, that all such sales shall be fully interruptible

and shall be curtailable pro rata without regard to transportation arrangements

made by purchasers.

22.2 Excess PAL Gas

Company may be required to make interruptible sales of unauthorized parked gas,

from time-to-time, pursuant to the procedures of Subsection 6.1 of Rate

Schedule PAL. Company shall have the right to make interruptible sales of such

excess gas from time to time at system Delivery Points pursuant to the terms of

the blanket certificate of public convenience and necessity granted to Company

pursuant to 18 C.F.R. Section 284.284(6) and Order No. 636 of the Federal

Energy Regulatory Commission. Such sales shall be made under rates, terms and

conditions mutually agreed upon between Company and purchasers, provided,

however, that all such sales shall be fully interruptible and shall be

curtailable pro rata without regard to transportation arrangements made by

purchasers.

23. ALLOCATION AND CREDITING OF PENALTIES

23.1 Amounts Invoiced for OFO and PAL Penalties

All amounts invoiced by Company as payment of OFO and PAL penalties, net of

incremental administration charges, shall be credited to Eligible Shippers in

the month such penalties are invoiced.

For a given month, Eligible Shippers are Shippers who did not incur an OFO

and/or PAL penalty. An Eligible Shipper shall receive a pro rata allocation of

the net amount invoiced based on such Shipper's Scheduled Quantities during

such month. The resulting allocation will be disbursed monthly to the Eligible

Shippers as a credit on their invoice.