Midwestern Gas Transmission Company

SECOND REVISED VOLUME NO. 1

Effective Date: 09/26/2000, Docket: RP00-508-000, Status: Effective

Second Revised Sheet No. 110 Second Revised Sheet No. 110 : Superseded

Superseding: First Revised Sheet No. 110

GENERAL TERMS AND CONDITIONS

3. Initial Assignments of upstream capacity shall occur hereunder pursuant to 18

C.F.R., Section 284.242.

All Initial Assignments pursuant to this Article must be effectuated before

Transporter releases any capacity under the terms of the upstream pipeline's

capacity release mechanism contained in such upstream pipeline's FERC Gas

Tariff. If Transporter releases capacity under the upstream pipeline's capacity

release program, such capacity remains available for permanent assignment;

provided, however, that any release made prior to the permanent assignment would

remain in force for its term.

4. Initial Assignments of Transporter's upstream capacity shall be offered to

Shippers in the Docket No. RS92-41 proceedings prior to the Implementation Date

to be effective on the Implementation Date. Transporter shall assign upstream

capacity to all Shippers who request assignment subject to the priorities set

forth in (1) above.

XXVII. DISCOUNTING POLICY

Transporter may, from time to time, selectively adjust any or all of the rates charged

to any individual shipper for service under Part 284 of the Commission's regulations for

which maximum and minimum rates are stated in this FERC Gas Tariff. Discounting of rate

charges shall, however, be done in the following order:

Demand Commodity*

1. GRI Surcharge 1. GRI Surcharge

2. Base Rate 2. Base Rate

* ACA Surcharge is non-discountable.

XXVIII. CONSTRUCTION AND FINANCING OF LATERALS

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

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

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

facilities, Transporter 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 Transporter determines that it will construct facilities that will

result in the expansion of its pipeline system, Transporter shall offer the proposed

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

policy statement shall require Transporter 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 Transporter from contesting an

application for service filed pursuant to Section 7(c) of the Natural Gas Act.

Transporter reserves the right to seek a waiver of the policy set forth herein, for

good cause shown.