MidContinent Express Pipeline LLC

Original Volume No. 1

Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 273 Original Sheet No. 273

GENERAL TERMS AND CONDITIONS

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35. ANNUAL CHARGES ADJUSTMENT (ACA) SURCHARGE

35.1 PURPOSE

This Section of the General Terms and Conditions is

filed pursuant to Section 154.402 and Subpart B of Part 382 of the

Commission's Regulations under the Natural Gas Act (NGA) and the

Natural Gas Policy Act of 1978. The intent and purpose of this

Section is to establish an Annual Charges Adjustment (ACA) provision

under which MEP can recover from its customers annual charges

assessed to it by the Commission pursuant to Part 382 of the

Commission's Regulations (ACA Cost). All amounts assessed pursuant to

Part 382 of the Commission's Regulations shall be recorded in Account

928. MEP will not seek to recover annual charges assessed to it

pursuant to Part 382 of the Commission's Regulations in an NGA

Section 4 rate case. For the purpose of recovering annual charges

assessed to MEP pursuant to Part 382 of the Commission's Regulations,

this Section establishes an ACA surcharge as set forth in the

Currently Effective Rates section of this Tariff.

35.2 APPLICABILITY

The ACA surcharge shall be applicable to all

transportation transactions performed by MEP.

35.3 BASIS OF THE ACA SURCHARGE

The rates for all transactions specified in Section 35.2

hereof shall be adjusted by a unit charge to recover ACA Cost. Such

unit charge shall be that increment, adjusted to MEP's pressure base

and Heating Value, if required, which has been established by the

Commission. The ACA unit charge shall be applied to the commodity

component of rates.

35.4 FILING PROCEDURE

The ACA surcharge shall be filed annually by MEP at

least thirty (30) days prior to the effective date of charge, as

defined in Section 35.5 below. Any such filing shall become effective

on the effective date of charges hereunder without suspension or

refund obligation.

35.5 EFFECTIVE DATE OF CHARGES

The effective date of charges filed pursuant to this

Section shall be October 1.