U S G Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 04/01/2000, Docket: CP99-211-001, Status: Effective

Original Sheet No. 8 Original Sheet No. 8 : Effective

FT RATE SCHEDULE

FIRM TRANSPORTATION SERVICE

4.2 New Facilities: In addition to the charges pursuant to Section 4.1 of

this Rate Schedule, if Transporter agrees to construct facilities for

service requested by Shipper, Transporter shall charge Shipper an

amount to advance 100% of the estimated cost (including a gross-up

for the income tax effects of reimbursement) of facilities

constructed at the Shipper's request in order to provide

transportation service under this Rate Schedule. Further,

Transporter shall charge Shipper an amount to advance 100% of the

estimated costs (including a gross-up for the income tax effects of

reimbursement) to be incurred by Transporter for appurtenant

facilities and equipment, including but not limited to electronic

custody transfer equipment, metering facilities, gravitometers,

calorimeters, flow controllers or other measurment or metering

facilities. Such estimated advance payments shall be subject to

true-up to actual costs incurred by Transporter for the construction

of transportation and appurtenant facilities within 30 days following

completion of construction of such facilities.

4.3 Incidental Charges: In addition to the charges pursuant to Sections

4.1 and 4.2 of this Rate Schedule, Transporter may charge Shipper an

amount to reimburse Transporter 100% for any filing or similar fees

and, if applicable, sales or use tax that have not been previously

paid by Shipper, which Transporter incurs in establishing or

rendering service.

4.4 Authorized Overrun Charge: If Shipper, upon receiving the advance

approval of Transporter, should on any day take under this Rate

Schedule a quantity of natural gas in excess of that which Shipper is

authorized to take under Shipper's FT Agreement, then such quantity

shall constitute an authorized overrun quantity. All Shipper

requests for Authorized Overruns must be nominated via facsimile to

Transporter. For all such authorized overrun volumes, Shipper shall

pay Transporter a rate equal to the volumetric derivative of the

maximum FT rate designed on a 100% load factor basis times the excess

quantities delivered to Shipper, unless the parties mutually agree

otherwise.