T.W. Phillips Pipeline Corp.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 58 Original Sheet No. 58

GENERAL TERMS AND CONDITIONS

(Continued)

18. FUEL AND GAS LOSS RETENTION PERCENTAGE

18.1 Applicability: Fuel and Gas Loss Quantities shall be furnished in kind by

Shipper. The Fuel and Gas Loss Reimbursement Percentage (“FRP”) shall apply to

Rate Schedule FT and IT. The total FRP will be the sum of two components: a

Base FRP and an FRP True-up Adjustment percentage. The FRP will be shown on the

Statement of Rates and Charges of this Tariff. The Base FRP will be determined

pursuant to Section 18.3. The FRP True-up Adjustment will be determined pursuant

to Section 18.4. The Fuel and Gas Loss Percentage shall be expressed as a per-

centage of receipt quantities which Shipper must provide Transporter in addition

to quantities Transporter will deliver to Shipper.

18.2 Annual FRP Filing: Transporter will make an annual limited Natural Gas Act

section 4 filing setting forth proposed changes to the Base FRP and the FRP

True-up Adjustment. Revisions to the Base FRP and the FRP True-up Adjustment.

Revisions to the Base FRP and FRP True-up Adjustment will be filed no later than

March 1 of each year and will become effective on April 1 of that year.

18.3 Determination of the Base FRP: The Base FRP will be calculated by dividing the

Fuel and Gas Loss Quantities retained for the 12-month period covering the prece-

ding January through December by the total transportation volumes projected to be

scheduled for the 12-month period the FRP will be in effect. Transporter will

round the resulting percentage to the nearest 0.01 percent.

18.4 Determination of the FRP True-up Adjustment: To determine the FRP True-up Adjust-

ment, Transporter will first calculate the FRP “True-up Quantity.” The True-up

quantity shall equal the difference between the Fuel and Gas Loss quantities

received from Shipper(s) during the 12-month period covering the preceding

January through December and the actual Fuel and Gas Loss quantities experienced

on Transporter’s system during the same period. The FRP True-up Adjustment will

be calculated by dividing the True-up Quantity by the total transportation volumes

projected to be scheduled for the same twelve-month period the FRP will be in

effect. Transporter will round the resulting percentage to the nearest 0.01%.