Ngo Transmission, Inc.

Original Volume No. 1

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Effective Date: 11/22/2003, Docket: RP04- 67-000, Status: Effective

Original Sheet No. 18 Original Sheet No. 18 : Effective

5.2 New Facilities:

(a) In addition to the charges pursuant to Section 5.1 of this

Rate Schedule, if Transporter agrees to construct facilities

for service requested by Shipper, Transporter shall charge

Shipper an advance equal in amount to 100% of the estimated

costs (including a gross-up for the income tax effects or

reimbursement) of facilities constructed at the Shipper's

request in order to provide transportation service under

this Rate Schedule. Further, Transporter shall charge

Shipper an advance equal in amount to 100% of the estimated

costs (including a gross-up for the income tax effects of

reimbursement) to be incurred by Transporter for appurtenant

facilities and equipment, including but not limited to

electronic custody transfer equipment, metering facilities,

gradiometers, calorimeters, flow controllers or other

measurement or metering facilities. Such estimated advance

payments shall be subject to true-up to actual costs

incurred by Transporter for the construction of

transportation and appurtenant facilities within 30 days

following completion of construction of such facilities.

(b) Alternatively, if Transporter and Shipper mutually agree,

the cost of such facilities as determined under Section

5.2(a) of this Rate Schedule may be recovered through an

additional monthly charge over an agreed period.

5.3 Incidental Charges: In addition to the charges pursuant to

Section 5.1 and 5.2 of this Rate Schedule, Transporter shall

charge Shipper an amount to reimburse Transporter 100% for any

filing or similar fees and, if applicable, sales or use tax that

have not been previously paid by Shipper, that Transporter incurs

in establishing or rendering service. Shipper shall also pay any

penalties or other applicable charges set out in the General Terms

and Conditions of this Tariff.

5.4 Retainage: Transporter shall deduct from the volume tendered by

Shipper to Transporter for service under this Rate Schedule, an

amount of gas sufficient to compensate Transporter for compressor

station fuel, line loss and/or other utility purposes, plus other

unaccounted for gas used in the operation of Transporter's

pipeline system in connection with such transportation. The

applicable retain age percentage shall be stated in the Notice of

Rates in this Tariff.