Tuscarora Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 04/01/2009, Docket: RP09-08-000, Status: Effective

Original Sheet No. 155 Original Sheet No. 155

GENERAL TERMS AND CONDITIONS

26. CAPACITY RELEASE (Continued)

26.7 Crediting, Billing Adjustments and Refunds

(a) Eligibility

Transporter shall provide revenue credits to any

Releasing Shipper which releases capacity to a

Replacement Shipper pursuant to the provisions of

Section 26. Transporter and Shipper may, in

connection with a Negotiated Rate Agreement

under a firm rate schedule, agree upon payment

obligations and crediting mechanisms in the event

of a capacity release that vary from, or are in

addition to, those set forth in this Section 26.7;

provided, however, that terms and conditions of

service may not be negotiated.

(b) Monthly Crediting Procedure

Revenue credits for released capacity shall be

credited monthly as an offset to a Releasing

Shipper's reservation charge (or the volumetric

equivalent of the reservation charge on a 100%

load-factor basis applicable to the Releasing

Shipper. This shall also be referred to in this

Section 26.6 as the equivalent volumetric rate)

payable to Transporter under the applicable rate

schedule for the service that has been released.

Transporter shall credit each month to the Releasing

Shipper's account 100% of the revenues from the

charges invoiced to the Replacement Shipper(s) for

the reservation charge (or equivalent volumetric

rate).