Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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Effective Date: 06/01/2002, Docket: RP00-482-003, Status: Effective

First Revised Sheet No. 348 First Revised Sheet No. 348 : Effective

Superseding: Original Sheet No. 348

GENERAL TERMS AND CONDITIONS

(continued)

12. RATES, TERMS AND CONDITIONS:

12.1 Application. For transportation to storage, no commodity charge

shall apply for deliveries to Storage Points of Injection except that

specific withdrawals of Gas at the Bistineau Storage Field shall be

considered a delivery into Gulf South Pipeline Company under the

applicable Rate Schedule FT or IT Service Agreement.

12.2 Changes in Rates and Other Terms and Conditions. Transporter

shall have the right at any time, and from time to time, to file and

place into effect unilateral changes or modifications in the rates and

charges, and other terms and conditions of service, in accordance with

the Natural Gas Act or other applicable law. Nothing contained in the

foregoing provision shall preclude or prevent Shipper from protesting

any such changes or modifications; however, Shipper agrees to pay all

rates and charges, and to comply with all terms and conditions, in

effect under this Tariff.

12.3 Negotiated Rates. Notwithstanding anything to the contrary

contained in this Tariff, Transporter and Shipper may negotiate a rate

for service under any rate schedule contained in this Tariff.

Transporter's maximum rate as shown on Transporter's Statement of

Effective Rates and Charges for a service ("Recourse Rate") is available

for any Shipper that does not desire to negotiate a rate with

Transporter.

A Negotiated Rate shall mean a rate for service, the individual

components of which may exceed the maximum reservation charge, if

applicable, or usage charge, as stated on Transporter's Statement of

Effective Rates and Charges for that service. With respect to a

Negotiated Rate which, when calculated on a 100% load factor basis,

exceeds Transporter's maximum rate for that service, for purposes of

allocation of capacity pursuant to Sections 10.3 and 10.4 of the General

Terms and Conditions of Transporter's Tariff, Shippers willing to pay

said Negotiated Rate would be considered to have paid the maximum

Recourse Rate. For purposes of exercising rights to continue service

pursuant to Section 21.9 of the General Terms and Conditions of

Transporter's Tariff, the highest rate that a Shipper must match if it

desires to retain all or a portion of its capacity and continue to

receive firm service under the same Rate Schedule beyond the expiration

date of such Long-Term Firm Agreement is the maximum rate applicable to

such service.