Trailblazer Pipeline Company

Fourth Revised Volume No. 1

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

Original Sheet No. 266 Original Sheet No. 266 : Effective

GENERAL TERMS AND CONDITIONS

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(2) Trailblazer shall credit the expansion

current deferral account in the event the current month actual cost

amounts for Expansion Fuel is less than the total value Trailblazer

receives hereunder for Expansion Fuel Reimbursement.

(v) Trailblazer will assess carrying charges on the

applicable Account No. 182.3, Unrecovered Expansion Fuel Reimbursement

Account carrying charge base. The carrying charge shall be the product

of the following:

(1) The carrying charge base shall be the prior

month's balance in the applicable Unrecovered Expansion Fuel

Reimbursement Account carrying charge base, net of deferred income

taxes and an adjustment necessary to effectuate quarterly compounding

of carrying charges.

(2) Trailblazer shall compute a monthly carrying

charge rate utilizing the effective annual FERC-approved interest rate

prescribed in Section 154.501 of the FERC's Regulations. Such rate

shall be expressed to the nearest one ten-thousandth of 1%.

(vi) As specified in Section 41.5(a) herein, the portion

of all refunds or revenue credits impacting the cost amounts

attributable to Expansion Fuel, including any out-of-period billing

adjustments, along with the related interest paid, shall be included in

the applicable Unrecovered Expansion Fuel Reimbursement Account. For

purposes of this adjustment provision, the expansion-related portion of

any such refunds, revenue credits or out-of-period adjustments relating

to the cost amounts shall be determined by multiplying those amounts by

the ratio of the actual Receipt Quantities during the twelve (12) month

period ending the month prior to receipt of the refund, revenue credit

or adjustment, to the sum of the actual total quantities received on

Trailblazer's system during the same period. The expansion-related

portion of any such refunds, revenue credits or out-of-period

adjustments relating to Expansion Fuel shall be directly applied to the

applicable Unrecovered Expansion Fuel Reimbursement Account.

41.6 EFFECTIVE DATE The newly derived Expansion Fuel

Reimbursement Percentage will be applicable to Receipt Quantities

beginning on the Initial Effective Date and shall be revised hereunder

on a periodic basis as set out in Section 41.3.