Tuscarora Gas Transmission Company

Original Volume No. 1

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Effective Date: 01/20/2004, Docket: RP00-487-003, Status: Effective

Third Revised Sheet No. 87 Third Revised Sheet No. 87 : Effective

Superseding: First Revised Sheet No. 87

GENERAL TERMS AND CONDITIONS

29. REVENUE CREDITS

29.1 Interruptible Transportation Revenue Credit

(a) Applicability. The credit available under this Section

29.1 shall apply to all Transportation Service Agreements

under the FT Rate Schedule.

(b) Basis of the Credit. Revenues to which the credit under

this Section 29.1 shall apply ("Eligible Revenues") shall be

the revenues actually received by Transporter under the IT Rate

Schedule that are not subject to refund and are attributable to

commodity charges but not imbalance charges, scheduling

penalties, unauthorized contract overrun penalties, ACA, or

other charges. Starting with the effectiveness of this Tariff

and the anniversary of the effective date every year

thereafter, Transporter shall first retain 100% of all IT Rate

Schedule revenues until Transporter has received an amount of

revenues equal to the annual amount of costs, if any, allocated

by the Commission to service under the IT Rate Schedule.

Thereafter and for the remainder of the year Transporter shall

credit to current month invoices under the applicable rate

schedules 90% of the Eligible Revenues received during the

prior month. Transporter shall retain the remainder of the

Eligible Revenues not required to be credited or refunded.

(c) Apportionment of Eligible Revenues. Eligible Revenues

attributable to a month shall be apportioned among all FT Rate

Schedule Shippers by applying the following ratio for each

customer: (a) the Shipper's total Maximum Transportation

quantities in effect during that month under the FT Rate

Schedule, (b) divided by the summation of the total Maximum

Transportation Quantity in effect during that month for all FT

Rate Schedule Shippers; provided, however, that no Shipper

shall receive a credit under this Section 29.1 in excess of

its Reservation Charges for that month, with such excess being

reallocated to the other Shippers in accordance with the above

ratios.