Tuscarora Gas Transmission Company

Original Volume No. 1

Effective Date: 07/30/2008, Docket: RP09-302-000, Status: Effective

Second Revised Sheet No. 74 Second Revised Sheet No. 74

Superseding: First Revised Sheet No. 74

GENERAL TERMS AND CONDITIONS

26.7 Obligations of Releasing Shipper and Other Matters. Notwithstanding

anything to the contrary herein, in any Releasing Shipper's Notice, in

any bid or accepted bid, in any Release, in any New Transportation

Service Agreement or otherwise:

(a) The Release or the New Transportation Service Agreement relating thereto

shall not constitute a release of any of the obligations of the Releasing

Shipper under the Existing Transportation Service Agreement and the

Releasing Shipper shall remain fully liable for all of those obligations,

including, without limitation, all reservation charges, reservation

surcharges, and other fixed costs owing under that service agreement in

respect of capacity rights released pursuant to the Release, as if the

Release had never been entered into; provided, however, Transporter shall

credit the Releasing Shipper with all reservation charges, reservation

surcharges, and other fixed costs ("Fixed charges"), but not charges

related to usage, actually paid by that Shipper and received by

Transporter which are owed in respect of the capacity rights released by

that releasing shipper and acquired by that Shipper from Transporter

under a New Transportation Service Agreement pursuant to releasing

Shipper's release (but not pursuant to subsequent releases of the same

capacity), even if greater than the Fixed Charges obligation of the

releasing Shipper. Shipper under a New Transportation Service Agreement

shall be liable to Transporter for all obligations incurred thereunder,

including Fixed Charges and charges related to usage. Any Replacement shipper

that is awarded released capacity subject to a rate cap shall be entitled to

receive refunds to the extent that the maximum rate set forth in this FERC Gas

Tariff is subsequently determined to be in excess of a just and reasonable

rate; provided, however, that if the Releasing Shipper is subject to a

discounted rate and received credits attributable to Fixed Charges that

Transporter is required to refund, Transporter shall be entitled to reverse

such credits and shall be required to refund such amounts to the Replacement

Shipper only to the extent actually collected back from the Releasing Shipper.

For capacity release transactions of one (1) year or less, the prevailing rate

for the transaction shall be considered just and reasonable and the

Replacement Shipper shall not be entitled to receive refunds referenced

herein.