Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

Effective Date: 12/01/1999, Docket: RP99-500-000, Status: Effective

Original Sheet No. 298 Original Sheet No. 298 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

22. PERIODIC RATE ADJUSTMENTS

Pipeline and Customer recognize that Pipeline will from time to

time experience changes in costs related to providing service

under this Tariff, including, but not limited to, changes in the

cost of labor, benefits, materials and supplies, taxes, required

rate of return, costs associated with the resolution of past

disputes or outstanding uncertainties concerning amounts owed by

Pipeline or Customer or attributable to Pipeline or Customer,

and costs generated by decisions of the Commission, the courts

or by an arbitration panel or other body having jurisdiction

over the Pipeline. Pipeline hereby notifies Customers that it

may be appropriate, equitable and consistent with cost

responsibility to allocate such costs among Customers based on

or taking into account past period factors, such as contract

demand levels, purchases or other factors related to a prior

period of time. Pipeline hereby notifies Customers that

Pipeline shall have the right from time to time to make rate

change filings which may include such costs and utilize an

allocation methodology based in whole or in part on factors

related to past periods. Customer shall have the right to

intervene and protest any such filing.