U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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

Original Sheet No. 60 Original Sheet No. 60 : Effective

GENERAL TERMS AND CONDITIONS

(g) Notwithstanding anything herein to the contrary, all Releasing

Shippers that release capacity shall remain responsible for

payment of all demand charges for released transportation

unless Transporter consents to a permanent release after the

Replacement Shipper submits all necessary information for a new

service request, satisfies all creditworthiness requirements

and the Releasing and Replacement Shippers execute all

necessary service agreements or amendments with Transporter.

Transporter and Shipper may, in connection with their agreement

to a Negotiated Rate under a firm transportation rate schedule,

agree upon Releasing Shipper payment obligations and crediting

mechanisms in the event of a capacity release that vary from or

are in addition to those set forth herein and in Subsection (i)

of this Section. The Releasing Shipper shall receive a demand

credit equaling the demand dollars for which Transporter bills

the Replacement Shipper. A demand rate for the purposes of

this Section 11 consists of (i) the base demand rate, and (ii)

all applicable surcharges. Any discount from said rate comes

first off the surcharges and then off the base demand rate.

Therefore a Releasing Shipper paying a discounted rate is only

entitled to receive any revenues from the release of its

capacity that exceed the amount of the applicable surcharges.