Trailblazer Pipeline Company

Fourth Revised Volume No. 1

Effective Date: 12/28/2007, Docket: RP08-168-000, Status: Effective

Original Sheet No. 242 Original Sheet No. 242 : Effective

GENERAL TERMS AND CONDITIONS

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35. ANNUAL CHARGES ADJUSTMENT CHARGE

35.1 PURPOSE

This Section of the General Terms and Conditions is

filed pursuant to Section 154.402 and Subpart B of Part 382 of the

Commission's Regulations under the Natural Gas Act (NGA) and the

Natural Gas Policy Act of 1978. The intent and purpose of this

Section is to establish an Annual Charges Adjustment (ACA)

provision under which Trailblazer can recover from its customers

annual charges assessed to it by the Commission pursuant to Part

382 of the Commission's Regulations (ACA Cost). All amounts

assessed pursuant to Part 382 of the Commission's Regulations

shall be recorded in Account 928. Trailblazer will not seek to

recover annual charges assessed to it pursuant to Part 382 of the

Commission's Regulations in an NGA Section 4 rate case. For the

purpose of recovering annual charges assessed to Trailblazer

pursuant to Part 382 of the Commission's Regulations, this Section

establishes an ACA charge as set forth in the Currently Effective

Rates section of this Tariff.

35.2 APPLICABILITY

The ACA charge shall be applicable to all

transportation transactions performed by Trailblazer.

35.3 BASIS OF THE ACA CHARGE

The rates for all transactions specified in Section

35.2 hereof shall be adjusted by a unit charge to recover ACA

Cost. Such unit charge shall be that increment, adjusted to

Trailblazer's pressure base and Heating Value, if required, which

has been established by the Commission. The ACA unit charge shall

be applied to the commodity component of rates.

35.4 FILING PROCEDURE

The ACA charge shall be filed annually by Trailblazer

at least thirty (30) days prior to the Effective Date of Charge.

Any such filing shall become effective on the effective date of

charges hereunder without suspension or refund obligation.

35.5 EFFECTIVE DATE OF CHARGE

The effective date of charges filed pursuant to this

Section shall be October 1.