Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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Effective Date: 01/07/2008, Docket: RP08-113-000, Status: Effective

Second Revised Sheet No. 305B Second Revised Sheet No. 305B : Effective

Superseding: First Revised Sheet No. 305B

GENERAL TERMS AND CONDITIONS

(continued)

27. DISCOUNT TERMS (continued)

27.5 The terms of any discount request granted by Pipeline pursuant

to this Section 27 shall be transmitted by e-mail to Customer

in the form of a Discount Confirmation. The Discount

Confirmation shall identify the applicable Customer's name,

contract number, rate schedule, term of the discount, discount

rate, applicable quantities, point(s) of receipt and delivery,

and/or the pipeline path being discounted. The Discount

Confirmation may also include other information required for

posting under the Commission's regulations and other

conditions consistent with Section 27.3. No particular

discount transaction shall be contractually binding on either

Pipeline or Customer until Pipeline has confirmed the terms of

the discount upon Pipeline's e-mail to Customer of the

Discount Confirmation for the transaction, subject to the

underlying Service Agreement being fully executed. All

discounts granted shall be effective no sooner than the

beginning of the next Gas Day following the Gas Day on which

the request is granted by Pipeline. Once the discount is

contractually binding, the Discount Confirmation will

constitute an addendum to the underlying Service Agreement.

Each such addendum is an integral part of the underlying

Service Agreement as if executed by both parties and fully

copied and set forth at length therein.

27.6 If Pipeline's recourse rates are subject to refund at any time

during the effectiveness of a Discount Confirmation, with

respect to the applicable discounted rate, Customer shall be

entitled to refunds of payments made by Customer only in the

event that the final, non-appealable maximum recourse rate,

whether usage-based or reservation-based, as determined by the

Commission for a given time period is lower than the rate

actually paid by Customer during such time period. Subject to

the condition precedent set forth in the immediately preceding

sentence, Customer's principal refund amount shall be equal to

(i) with respect to usage-based rates, the product of (aa) the

positive difference between the final, non-appealable maximum

recourse rate and the discounted rate, and (bb) the quantities

of gas delivered to Customer, or for Customer's account,

during the refund period; and (ii) with respect to

reservation-based rates, the product of (cc) the positive

difference between the final, non-appealable maximum recourse

rate and the discounted rate, (dd) the MDTQ covered by the

discounted rate, and (ee) the number of Months in the refund

period (partial Months shall be prorated for the number of

Days in the Month that fall within the refund period and a

discounted rate that is not a Monthly rate shall be adjusted

for purposes of this calculation to reflect the Monthly

equivalent of the rate).