U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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

Original Sheet No. 70 Original Sheet No. 70 : Effective

GENERAL TERMS AND CONDITIONS

23. CONSTRUCTION OF FACILITIES

23.1 Transporter will have no obligation to construct any facilities but

if it elects to construct for Shippers under this tariff, it will do

so on a non-discriminatory basis, provided, however, Transporter

shall not be obligated to construct facilities hereunder that will

result in the expansion or diminishment of Transporter's pipeline

system or that will place Transporter at risk for recovering costs of

facilities built to satisfy individual Shippers. Transporter will

own and operate all facilities constructed.

23.2 Shippers that request service that requires construction of

facilities by Transporter shall reimburse Transporter for the costs

of preparing facility cost estimates (including any engineering or

related study costs) and for the costs of such facilities. Shipper

shall pay the new facilities charge by lump sum payment, based upon

Transporter's estimated cost, prior to any construction activity

unless another form of payment is otherwise mutually agreed upon.

Transporter may require Shipper to pay the estimated cost of

preparing the facility cost estimate prior to Transporter's preparing

such estimate. Such payments shall be applied to the actual cost of

such new facilities; provided, however, any excess shall be returned

to the Shipper and any amounts still owing shall be paid by the

Shipper to Transporter within thirty days after final determination.

24. INCORPORATION IN RATE SCHEDULES AND SERVICE AGREEMENTS

These General Terms and Conditions are incorporated in and are a part of

Transporter's Rate Schedules and Service Agreements. To the extent that any

provision of a gas service agreement conflicts with any provision of the

corresponding rate schedule, the provisions in the Rate Schedule shall govern.

To the extent that any provision in either a gas service agreement or a Rate

Schedule conflicts with any of Transporter's General Terms and Conditions,

Transporter's General Terms and Conditions shall govern unless waived.