Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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

Original Sheet No. 249 Original Sheet No. 249 : Effective

GENERAL TERMS AND CONDITIONS

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38.4 CAPACITY RELEASE REVENUE

Trailblazer and Shipper may agree hereunder to a

Negotiated Rate or Negotiated Rate Formula which includes payment

obligations or crediting mechanisms in the event of a capacity

release which vary from those set out in Section 19.13 of these

General Terms and Conditions. Nothing in the forgoing sentence,

however, shall authorize Trailblazer or Shipper to violate the

Commission's policy with respect to the negotiation of terms and

conditions of service.

38.5 Under this Section 38, Trailblazer may negotiate

the fuel retainage and surcharge components of its rates.

Trailblazer will protect Recourse Rate Shippers from subsidizing

Shippers paying negotiated fuel retainage and surcharge amounts as

set out in this Section 38.5. The separate accounting under Section

38.3 hereof will include separate accounting for fuel retainage and

surcharge amounts collected and a comparison with the amounts which

would have been collected at the maximum rate levels for fuel

retainage and surcharges stated in Trailblazer's Tariff. In the

event that Trailblazer agrees as part of a Negotiated Rate or

Negotiated Rate Formula to assess fuel retainage or surcharge

amounts which are less than the amounts which would be collected at

the maximum rate level for such components stated in Trailblazer's

Tariff, Trailblazer will credit the maximum Recourse Rate surcharge

amounts to its surcharge accounts and will credit the maximum

Recourse Rate fuel retainage levels to its fuel retainage accounts;

provided, however, that Trailblazer is not required to include fuel

at maximum retainage levels if it can show that no fuel or less fuel

was used in providing the service.