Ngo Transmission, Inc.

Original Volume No. 1

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

Original Sheet No. 107 Original Sheet No. 107 : Effective

22. CONSTRUCTION OF FACILITIES

22.1 Obligation to Construct: Transporter will have no obligation to

construct any facilities but, if it elects to construct facilities

on a Shipper's behalf under this Tariff, it will do so on a non-

discriminatory basis, provided, however, Transporter shall not be

obligated to construct facilities hereunder that will result in

the expansion or diminishment of Transporter's pipeline system or

that will place Transporter at risk for recovering costs of

facilities built to satisfy individual Shippers. Unless

Transporter agrees otherwise, Transporter will own and operate all

facilities constructed.

22.2 Cost of Facilities: Shippers which request service that requires

construction of facilities by Transporter shall reimburse

Transporter for the costs of preparing facility cost estimates

(including any engineering or related study costs) and shall also

reimburse Transporter for the costs of such facilities consistent

with the provisions of the applicable Rate Schedule.

23. INCORPORATION IN RATE SCHEDULES AND SERVICE AGREEMENTS

These General Terms and Conditions are incorporated in and are a

part of Transporter's Rate Schedules and Form of Service

Agreements. To the extent that any provision of a service

agreement conflicts with any provision of the corresponding rate

schedule, the provisions in the Rate Schedule shall govern. To

the extent that any provision in either a service agreement or a

Rate Schedule conflicts with any of these General Terms and

Conditions, the General Terms and Conditions shall govern unless

expressly waived.

24. OPERATIONAL PURCHASES AND SALES OF GAS

Transporter may make purchases and sales of gas from time to time

incidental to Transporter's transportation and storage functions,

including maintaining adequate line pack. Further, in order to

alleviate conditions that threaten the integrity of its system,

Transporter may periodically acquire quantities of gas that are in

excess of its long-term system needs. Transporter shall have the right

to make sales of such excess gas from time to time at receipt points

pursuant to the terms of the blanket certificate of public convenience

and necessity available for use by Transporter pursuant to the

Commission's Regulations at 18 C.F.R. Section 284 and to the

Commission's Order No. 636. Such sales shall be made under rates, terms

and conditions mutually agreed upon between Transporter and purchasers.