Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 02/25/2002, Docket: RP02-151-001, Status: Effective

Substitute Original Sheet No. 307 Substitute Original Sheet No. 307 : Pending

NNS RATE SCHEDULE

(Continued)

(iii) If the NNS Customer is unable to assign the rights as

provided in (b)(i) above, which results in a loss of NNS

MDQ, then to the extent that any portion of the NNS service

agreement's demand charges becomes a stranded cost, the NNS

Customer shall have the right to reduce its NNS WSDCD upon

a mutually agreed to number of days prior written notice to

Gulf South not to exceed 60 days from the effective date of

the final order.

(c) If a regulatory or legislative authority formally challenges the

prudence of a NNS Customer's decision to contract for the MDQ

established by its NNS service agreement, then the NNS Customer

shall provide Gulf South with prompt written notice of such

regulatory action so that Gulf South can determine the

appropriate action, if any, it should take in any such

proceeding.

(i) Gulf South and the NNS Customer shall present facts or

otherwise demonstrate that the type of service and the MDQ

contracted for under Customer's NNS service agreement are

prudent. In addition, the NNS Customer and Gulf South will

work together to ensure that the NNS service agreement is

not adversely affected in any such proceeding compared to

how the NNS Customer's other firm service agreements are

treated.

(ii) In the event that the NNS Customer is prohibited from fully

recovering in its rates the transportation costs associated

with its NNS service agreement based upon findings by its

regulatory authority that the NNS service agreement WSDCD

exceeds its peak day needs, then the NNS Customer shall

have the right to reduce its NNS service agreement WSDCD

upon a mutually agreed to number of days not to exceed 60

days prior written notice to Gulf South after a final order

mandating a reduction in its NNS WSDCD has been issued.

The reduction in WSDCD shall not be greater than the

reduction necessary to achieve the level of service

approved by the NNS Customer's regulatory authority.