Saltville Gas Storage Company L.L.C.

Original Volume No. 1

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Effective Date: 06/15/2008, Docket: RP05-157-013, Status: Effective

Third Revised Sheet No. 156 Third Revised Sheet No. 156Superseding: Second Revised Sheet No. 156 GENERAL TERMS AND CONDITIONS (Continued)32. NEGOTIATED RATES Saltville and Customer may mutually agree on a negotiated rate or rate formula with respect to rates, rate components, charges, or credits differing from the otherwise applicable recourse rate under Rate Schedules FSS, ISS, IPS and/or ILS. 32.1 Definition A negotiated rate may be less than, equal to, or greater than the Maximum Recourse Rate and/or the Minimum Rate; may be a rate design other than straight fixed-variable; and may include a minimum quantity. A negotiated rate may utilize Gas commodity basis differential pricing mechanisms. The recourse rates will be available to any Customer that does not wish to negotiate a rate. 32.2 Limitations This Section 32 does not authorize the negotiation of terms and conditions of service. 32.3 Allocation of Capacity Under any circumstances where allocation of capacity is determined by the rate being paid, a negotiated rate Customer paying a rate higher than the Maximum Recourse Rate will be deemed to be paying a rate equal to such Maximum Recourse Rate. 32.4 Bidding for Capacity The cap for bidding for capacity under the right of first refusal provisions in Section 8 of Rate Schedule FSS contained in this FERC Gas Tariff is the Maximum Recourse Rate. 32.5 Capacity Release Except as expressly provided for in Section 4 of the General Terms and Conditions, the release of capacity under a negotiated rate agreement is capped at the Maximum Recourse Rate; provided, however, the negotiated rate Customer will continue to be obligated to pay Saltville the difference by which the negotiated rate exceeds the rate paid by the Replacement Customer. Saltville and a negotiated rate Customer may agree upon payment obligations and crediting mechanisms, which vary from or are different from those set forth in Saltville's capacity release provisions. 32.6 Accounting Treatment Saltville will establish a new sub-account to record the revenues received from any negotiated rate transactions and shall maintain supporting information at a level of detail that would be sufficient for Natural Gas Act Section 4 rate change filing purposes. Saltville will keep separate and identifiable each volume transported, billing determinant, rate component, surcharge, and revenue associated with a negotiated rate to permit filings in the form of Statements G, I, and J in future rate proceedings.