Midwestern Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 01/01/2002, Docket: RP02- 72-000, Status: Effective

Original Sheet No. 271 Original Sheet No. 271 : Effective

GENERAL TERMS AND CONDITIONS

28. CONSTRUCTION AND FINANCING OF LATERALS

Unless otherwise agreed to by the parties, Company shall not be required to own,

construct or install gas supply or market area lateral facilities. In the event

Company agrees to own, construct or install gas supply or market area lateral

facilities, Company shall do so on a not unduly discriminatory basis, and may require

the reimbursement of costs associated therewith as agreed to by the parties. In the

event that Company determines that it will construct facilities that will result in

the expansion of its pipeline system, Company shall offer the proposed expansion

capacity to all Shippers on a non-discriminatory basis. Nothing in this policy

statement shall require Company to file an application for a certificate of public

convenience and necessity under Section 7(c) of the Natural Gas Act. Nothing in this

policy statement, further, shall prevent Company from contesting an application for

service filed pursuant to Section 7(c) of the Natural Gas Act. Company reserves the

right to seek a waiver of the policy set forth herein, for good cause shown.

29. PERIODIC REPORTS

The following is a list of periodic reports that Company must make pursuant to

Commission order or to a settlement initiated under Parts 154 or 284 of the

Commission's regulations:

(a) Cash Out Report

This report reflects the net cash out activity for the prior year, which for

purposes of the report, begins on the restructuring anniversary of September 1

and must be filed with the Commission at the end of each annual period. For more

information, see Company's Rate Schedule LMS-MA.

(b) OFO Report

This report provides details regarding OFOs if issued during the previous quarter

and must be provided to all Shippers and Balancing Parties quarterly. For more

information, see Section 8 of the General Terms and Conditions of Company's FERC

Gas Tariff.