Nora Transmission Company

First Revised Volume No. 1

Effective Date: 02/01/1996, Docket: RP96- 99-000, Status: Effective

First Revised Sheet No. 160 First Revised Sheet No. 160 : Superseded

Superseding: Original Sheet No. 160

GENERAL TERMS AND CONDITIONS (Continued)

27. CONSTRUCTION OF LATERALS

Pipeline will not build or contribute to the construction cost of

building any laterals for transportation service. The term

"lateral" as used herein is intended to cover any pipeline exten-

sion other than a mainline extension built from an existing

pipeline facility to deliver gas to one or more customers,

including new delivery points and enlargements or replacements

of existing laterals. Pipeline reserves the right to seek a

waiver of the policy set forth herein for good cause shown.

28. DISCOUNTING

Pipeline may elect at its discretion to discount the maximum rate(s)

applicable to transportation service for any Customer subject to

the limitation that such discounted rate(s) shall not be less than

the minimum rate(s) for the applicable service as set forth in

Pipeline's FERC Gas Tariff as may be changed from time to time.

Any rate discount provided to any Customer shall be applied to

the components of the rate in the following order: (1) GRI

surcharge; and (2) base tariff rate(s) for the applicable

service including retainage. If the discounted rate(s) charged

to a Customer exceed the rate(s) approved by the Commission,

any required refunds shall be based on the amount by which the

rate actually collected exceeds the rate approved by the

Commission.