Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 212 Original Sheet No. 212

GENERAL TERMS AND CONDITIONS

19. ANNUAL CHARGES ADJUSTMENT CLAUSE

19.1 Purpose

For the purpose of funding the Annual Charges assessed against

Transporter by the Commission or any successor agency, this

Section establishes an Annual Charge Adjustment Clause ("ACA")

pursuant to 18 CFR Section 154.402 to be applicable to

Transporter's Rate Schedules FT and IT.

19.2 Basis of the ACA

The rate schedules specified in Section 19.1 hereof shall

include an increment for the ACA. Such charge shall be that

increment, adjusted to Transporter's pressure base and heating

value, if required, which has been approved by the Commission

orders approving the Annual Charges. The ACA shall be reflected

on Sheet Nos. 6 and 7 of this Tariff, where applicable.

19.3 Filing Procedure

The notice period and proposed effective date of the filings

pursuant to this Section 19 shall be the same as those permitted

under Commission Order Nos. 472 and 472-A, unless a lesser

notice period and different effective date is allowed by valid

Commission order.

19.4 Intent

Transporter intends to fund the Annual Charges assessed against

it by the Commission or any successor agency pursuant to 18 CFR

Section 154.402 through this Section 19. If this Section 19 is

approved by the Commission, Transporter does not intend to

recover such Annual Charges recorded in FERC Account No. 928

through a general rate case filing under Section 4 of the

Natural Gas Act.