Tuscarora Gas Transmission Company

First Revised Volume No. 1

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

Original Sheet No. 181 Original Sheet No. 181

GENERAL TERMS AND CONDITIONS

32. NEGOTIATED RATES

32.1 Availability. Notwithstanding anything to the contrary contained in

this Tariff, including the provisions of the rate schedules contained

herein, Transporter and Shipper may mutually agree to a Negotiated

Rate under any Agreement, provided that Shipper has not acquired its

capacity on a temporary basis under the capacity release provisions of

Section 26 of these General Terms and Conditions. If a portion of the

capacity under any existing Agreement is agreed to be priced at

Negotiated Rates, the existing maximum or discounted tariff rates will

continue to apply to the capacity not subject to the Negotiated Rates.

As a recourse to the Negotiated Rates, any Shipper may receive service

at the applicable maximum tariff rates, including surcharges. The

Negotiated Rate may be less than, equal to, or greater than the

maximum and minimum applicable tariff rate; may be based on a rate

design other than straight-fixed variable; and may include a minimum

quantity. Transporter's Recourse Rates shall be available to any

Shipper that does not agree to a Negotiated Rate. Recourse Rates are

set forth on the Rate Sheets within this Tariff.

Transporter and a Shipper may agree to a Negotiated Rate for the

entire term of a Transportation Service Agreement, or may agree to a

Negotiated Rate for some portion of the term of a Transportation

Agreement. Transporter and Shipper may agree to apply the Negotiated

Rate to all or a portion of capacity under Shipper's Firm

Transportation Service Agreement.

During the period a Negotiated Rate is in place, the Negotiated Rate

shall govern and apply to the Shipper's service under the Negotiated

Rate Agreement and the otherwise applicable rate, rate component,

charge or credit which the parties have agreed to replace with the

Negotiated Rate shall not apply to, or be available to, the Shipper.

Only those rates, rate components, charges or credits identified by

Transporter and Shipper in writing as being superceded by a Negotiated

Rate shall be ineffective during the period that the Negotiated Rate

is effective; all other rates, rate components, charges, or credits

prescribed, required, established or imposed by this Rate Schedule or

Tariff shall remain in effect. At the end of the period during which

the Negotiated Rate is in effect, the otherwise applicable tariff

rates or charges shall govern any service provided to Shipper.

(Continued)