Viking Gas Transmission Company

First Revised Volume No. 1

Effective Date: 08/15/2004, Docket: RP04-401-000, Status: Effective

Sixth Revised Sheet No. 63 Sixth Revised Sheet No. 63 : Effective

Superseding: Fifth Revised Sheet No. 63

GENERAL TERMS AND CONDITIONS

16. NEW FACILITIES POLICY (Continued)

16.3 (Continued)

In addition, Company's construction, acquisition and/or installation cost for

any project or portion of a project under payment method detailed in

Subsection 16.3(b) or Subsection 16.3(c) of these General Terms and Conditions

shall not exceed ten (10) million dollars; any Shipper requiring new facilities

costing more than ten (10) million dollars must elect payment method

Subsection 16.3(a) of these General Terms and Conditions for Company's costs in

excess of ten (10) million dollars. Company may waive this ten (10) million

dollar cap on a non-discriminatory basis if funds are available to Company to

support a requested new facilities project.

For the purposes of this Section, Company's construction, acquisition, and/or

installation costs shall include, but shall not be limited to: Company's

design costs, equipment costs, labor costs, material costs, supervision costs,

construction financing costs, taxes (whether income or otherwise), filing fees,

right of way costs and permitting costs. Nothing in this Section shall require

Company to file an application for a certificate of public convenience and

necessity under Section 7(c) of the Natural Gas Act.

Nothing in this Section, further shall prevent Company from contesting an

application for service filed pursuant to Section 7(a) of the Natural Gas Act.

Finally, nothing in this Section shall require Company to build any facilities,

the construction or operation of which would subject Company to the

jurisdiction of any state regulatory agency. Company reserves the right to

seek a waiver of the policy set forth herein, for good cause shown, during any

proceeding before the Commission instituted under Section 7 of the Natural Gas

Act.

17. DISCOUNTING

17.1 Order of Discounting

Unless otherwise specified in the Firm Transportation Agreement, to the extent

Company discounts the rates for service pursuant to this Tariff, the rates for

service will be deemed to have been discounted in the following order:

(a) Reservation Charge, but not below the stated Minimum Rate.

(b) Commodity Charge, but not below the stated Minimum Rate.

17.2 Types of Discounts

From time to time, a Shipper or Buyer and Company may agree in writing on a

level of discount of the otherwise applicable rates and charges in addition to

a basic discount from the stated Maximum Rates.

In all circumstances, the discounted rate shall be between the Maximum Rate and

the Minimum Rate applicable to the service being provided.