Trunkline Gas Company, LLC

Third Revised Volume No. 1

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Effective Date: 08/01/2003, Docket: RP03-534-000, Status: Effective

Original Sheet No. 310 Original Sheet No. 310 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

27. TRANSITION COSTS (Continued)

The GSR Reservation Surcharge shall be adjusted annually

during the Initial GSR Cost Collection Period to reflect

changes in the effective billing determinants under Rate

Schedules FT, EFT, QNT, LFT and SST. Such revisions to

the GSR Reservation Surcharge will become effective

twelve (12) months after the effective date of the rate

filing to establish the Initial GSR Cost Collection

Period or subsequent adjustment to the GSR Reservation

Surcharge. At least thirty (30) days prior to the

effective date of the annual adjustment to the GSR

Reservation Surcharge, Trunkline shall file with the

Federal Energy Regulatory Commission and post, as

defined in Section 154.2(d) of the Commission's

Regulations, Tariff Sheet Nos. 10, 11, 12, 13 and 14

together with supporting computations.

(3) Rates for interruptible service under Rate Schedules IT

and QNIT shall be adjusted to permit the recovery of the

applicable GSR Costs during the three year Initial GSR

Cost Collection Period using the applicable

interruptible service design determinants underlying

Trunkline's then-effective rates. The adjustment to

rates for interruptible service under Rate Schedules IT

and QNIT, as stated on effective Tariff Sheet Nos. 16

and 17 of Trunkline's FERC Gas Tariff, Third Revised

Volume No. 1, shall be based on one-third (1/3) of the

applicable GSR Costs. Such GSR Costs shall include

carrying costs for the Initial GSR Cost Collection

Period.

(E) GSR Exit Fee

If at any time prior to the conclusion of the Initial GSR

Cost Collection Period or any Carryover GSR Cost Collection

Period, a Shipper under a firm Service Agreement affected by

this Section 27.2 requests a modification to the Service

Agreement to reduce the MDQ or requests a termination of the

Service Agreement and if Trunkline agrees to such reduction

or termination, then affected Shipper shall immediately

become obligated to Trunkline for the GSR Exit Fee. The GSR

Exit Fee shall equal the amount which would have been

collected during the remainder of the Initial or Carryover