Viking Gas Transmission Company

First Revised Volume No. 1

Effective Date: 01/01/2006, Docket: RP02-132-009, Status: Effective

Sixth Revised Sheet No. 87.01 Sixth Revised Sheet No. 87.01 : Effective

Superseding: Fifth Revised Sheet No. 87.01

GENERAL TERMS AND CONDITIONS

26. FUEL AND LOSSES RETENTION ADJUSTMENT

26.1 Fuel and Losses

The quantity of gas retained by Company for fuel and losses shall be equal to

the amount established pursuant to NAESB WGQ Standard 1.3.16: Where fuel

reimbursement is in kind, the standard fuel calculation mechanism, as this is

related to the nomination process, should be (1-fuel %/100) multiplied by

receipt quantity = delivery quantity. The fuel and loss retention percentages

(FLRP) shall equal the applicable percentages shown on the effective Statement

of Rates in Company's FERC Gas Tariff; provided, however, (i) for service that

is rendered entirely by displacement, Shipper shall furnish only that quantity

of gas associated with losses shown on the Statement of Rates and (ii) the fuel

percentage may be reduced to any level not less than the actual fuel required

for a transaction. Pursuant to NAESB WGQ Standard 1.3.15: When the fuel

reimbursement method is fuel in-kind, the results of the fuel reimbursement

calculations for the nomination process should be rounded to the nearest

Dekatherm or Gigajoule (Canada).

26.2 Fuel and Losses Retention Adjustment

26.2.1 General

This Section of the General Terms and Conditions sets forth the

procedures to reflect changes in Company's fuel and loss retention

percentages (FLRPs) applicable to Company's transportation services,

including Rate Schedules FT-A, IT, LMS, and AOT, under which Company

retains fuel.

26.2.2 Conditions

(a) The FLRPs set forth in Company's Tariff may be increased to

reflect a net positive change in FLRPs and shall be decreased to

reflect a net negative change in FLRP's.

(b) Company shall file with the Federal Energy Regulatory Commission

to reflect net changes in FLRPs at least 30 days prior to each

April 1 and November 1 which is the beginning date for each

Seasonal Period.