Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

Effective Date: 04/01/1996, Docket: RP96-200-000, Status: Effective

Fourth Revised Sheet No. 233 Fourth Revised Sheet No. 233 : Effective

Superseding: Third Revised Sheet No. 233

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

Koch Gatway 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 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.