Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

Effective Date: 08/01/2010, Docket: RP10-948-000, Status: Effective

Sub Third Revised Sheet No. 295 Sub Third Revised Sheet No. 295

Superseding: Sub Second Revised Sheet No. 295

GENERAL TERMS AND CONDITIONS

(continued)

20. FUEL RETAINAGE QUANTITY (continued)

20.3 Projected FRP. With each filing hereunder for each

specified calendar period Pipeline shall calculate a

Projected FRP as the quotient obtained by dividing (a) the

projected annual quantities of Company Use Gas for each

specified calendar period by (b) the projected annual

throughput for each specified calendar period.

20.4 True Up.

(a)FRQ Deferred Account. Pipeline shall record in the FRQ

Deferred Account the net monetary value of all cash

transactions involving gas differences as a result of the

operation of this Section 20, the imbalance resolution

procedures of Section 11 of the GT&C, and Sections 8.6, 8.7

and 10 of Rate Schedule MNPAL, as well as other requirements

for Pipeline's purchase or sale of gas for the purpose of

maintaining the operational integrity or reliability of

Pipeline's system. The FRQ Deferred Account shall be

accumulated in twelve-month accumulation periods, August 1

through July 31.

(b)Disposition of Gas Differences. At Pipeline's discretion

quantities of gas required to support under-realization of in-

kind compensation may be obtained by Pipeline from gas

available as a result of the operation of the imbalance

resolution procedures contained in Section 11 of the GT&C, by

means of purchase arrangements available to Pipeline, or from

other sources. At Pipeline's discretion, quantities of gas

available to Pipeline as a result of over-realization of in-

kind compensation may be utilized for any system needs or may

be disposed of in accordance with the provisions of Section

11.7A of the GT&C.