Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 07/01/2004, Docket: RP04-306-000, Status: Effective

Second Revised Sheet No. 15C.01 Second Revised Sheet No. 15C.01 : Effective

Superseding: First Revised Sheet No. 15C.01

RATE SCHEDULE FT-B

FIRM TRANSPORTATION SERVICE

5. RATES AND CHARGES (Continued)

5.5 Negotiated Rates

Notwithstanding any provision of Company's effective FERC Gas Tariff to the

contrary, Company and Shipper may mutually agree in writing to a Negotiated Rate

with respect to rates, rate components, charges, or credits that are otherwise

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

applicable provision of Company's effective FERC Gas Tariff. The Negotiated Rate

may be less than, equal to or greater than the Maximum Rate; shall not be less

than the Minimum Rate; may be based on a rate design other than straight fixed

variable; and may include a minimum quantity. The Maximum Rate shall be available

to any Shipper that does not choose a Negotiated Rate. Nothing in the provisions

governing Negotiated Rate Agreements shall authorize Company or Shipper to violate

FERC's policy with respect to negotiation of terms and conditions of service.

Such Negotiated Rate shall be set forth on an Exhibit of the executed Firm

Transportation Agreement and on the Statement of Negotiated Rates in Company's

FERC Gas Tariff.

If Company agrees to such Negotiated Rate(s), then the Negotiated Rate(s) shall be

effective only for the period agreed upon by Company. During such period, the

Negotiated Rate shall govern and apply to the Shipper's services 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

Company and Shipper in writing as being superseded by a Negotiated Rate shall be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 Company's Tariff shall remain in effect.

At the end of the period during which the Negotiated Rate is in effect, the

otherwise applicable Maximum Rates or charges shall govern the service provided to

Shipper.

Shippers paying a Negotiated Rate which exceeds the Maximum Rate will be

considered to be paying the Maximum Rate for purposes of scheduling, curtailment

and interruption, and calculating the economic value of a request for unsubscribed

firm capacity.

Replacement Shippers may not bid or pay a rate greater than the Maximum Rate and

are not eligible for Negotiated Rates. In the event that capacity subject to a

Negotiated Rate which is based on a rate design other than straight fixed variable

is released, Shipper and Company may agree on billing adjustments to the Releasing

Shipper that may vary from or are in addition to those set forth in Section 21 of

the General Terms and Conditions of Company's effective FERC Gas Tariff in order

to preserve the economic bases of the Negotiated Rate. Such payment obligation

and crediting mechanism for capacity release shall be set forth on an Exhibit of

the executed Firm Transportation Agreement.