Trailblazer Pipeline Company

Third Revised Volume No. 1

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Effective Date: 11/01/1997, Docket: RP97- 54-006, Status: Effective

First Revised Sheet No. 103A First Revised Sheet No. 103A : Superseded

Superseding: Substitute Original Sheet No. 103A

GENERAL TERMS AND CONDITIONS

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1.21 NEGOTIATED RATE FORMULA

"Negotiated Rate Formula" shall mean a rate formula

which Trailblazer and Shipper have agreed will be applied to service

under Rate Schedule FTS or ITS which may result in a rate which at

all times or from time to time exceeds the maximum rate for service

under Rate Schedule FTS or ITS, as applicable. If the rate will

sometimes be less than but will never exceed the applicable maximum

rate, such rate will be considered a discounted rate rather than a

rate pursuant to a Negotiated Rate Formula. Any Agreement entered

into after June 1, 1997, which provides for a rate under Rate

Schedule ITS or FTS other than the applicable maximum rate shall

contain a provision setting out the mutual agreement of the parties

as to whether the pricing terms represent a discounted rate or a

rate pursuant to a Negotiated Rate Formula.

1.22 NOMINATION

"Nomination" shall mean the written requests for

transportation submitted pursuant to Section 10.

1.23 OPERATIONAL BALANCING AGREEMENT ("OBA")

An OBA is a contract between two parties which specifies

the procedures to manage operating variances at an interconnect.

1.24 OVERRUN GAS

"Overrun Gas" shall mean those volumes of gas tendered

for transportation by Shipper on any day in excess of its currently

effective Contract Demand or MDQ, to the extent such gas is

scheduled under Section 10 hereof.

1.25 PROSPECTIVE SHIPPER

"Prospective Shipper" shall mean those entities which do

not have a currently effective Contract Demand.