Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

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

Fourth Revised Sheet No. 306 Fourth Revised Sheet No. 306

Superseding: Third Revised Sheet No. 306

GENERAL TERMS AND CONDITIONS

(continued)

28. DISCRETIONARY WAIVER

Pipeline may waive any of its rights hereunder or any

obligations of Customer on a basis that is not unduly

discriminatory; provided that no waiver by either Customer or

Pipeline of any one or more defaults by the other in the

performance of any provision of the Service Agreement between

Customer and Pipeline shall operate or be construed as a waiver

of any future default or defaults, whether of a like or of a

different character.

29. DESCRIPTIVE HEADINGS

The descriptive headings of the provisions of this FERC Gas

Tariff are formulated and used for convenience only and shall

not be deemed to affect the meaning or construction of any of

such provisions.

30. GOVERNMENTAL REGULATION

The Service Agreement, and all terms and provisions contained

or incorporated therein, and the respective obligations of the

parties thereunder are subject to valid laws, orders, rules and

regulations of duly constituted authorities having

jurisdiction.

31. REPORTS WITH RESPECT TO TARIFF

31.1 Fuel Reimbursement Quantity. On an annual basis, Pipeline

files its Fuel Retainage Quantity ("FRQ") report in

accordance with Section 20 of the GT&C. The FRQ report

contains: (1) the revised Fuel Retainage Percentages

("FRPs") for the 12 month period beginning in November,

(2) a workpaper supporting the revised fuel requirements,

(3) the calculation of the FRQ deferral allocation, (4)

workpapers showing the monthly entries to the FRQ deferred

balance for the period of August 1 through July 31, (5)

the computation of each Customer's surcharge or refund for

the FRQ Deferred Account balance as of July 31 of each

year plus carrying charges, and (6) the calculation of the

monthly carrying charges through November 1 of each year.

31.2 Contact Information. All contact with respect to the reports

submitted pursuant to this Section 31 should be made to:

Joseph F. McHugh

Director, Rates & Regulatory Affairs

M&N Management Company

890 Winter Street, Suite 300

Waltham, MA 02451

Telephone: (617) 560-1518

Facsimile: (617) 560-1581