Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

Effective Date: 11/01/2000, Docket: RP01- 4-003, Status: Effective

Substitute Fourth Revised Sheet No. 84 Substitute Fourth Revised Sheet No. 84 : Effective

Superseding: Fourth Revised Sheet No. 84

GENERAL TERMS AND CONDITIONS (continued)

Transporter are greater than deliveries by Transporter, or by

the payment by Shipper to Transporter, where receipts by

Transporter are less than deliveries by Transporter, in

accordance with the provisions of Section 3.7(d) below ("Cash-

Out") or pursuant to the provisions provided herein and under

the terms of the OBA, unless otherwise mutually agreed.

Transporter shall post on its EBB those Point(s) of Receipt and

Delivery which are subject to an OBA.

(b) Daily Variances - The daily variance at any point shall be the

difference between the total volumes scheduled for receipt and

delivery at that point by scheduled nomination pursuant to

Section 3.4 and the actual quantity of gas delivered by

Transporter at such point on any day, excluding volumes received

or delivered by Transporter pursuant to service under its LMS

Rate Schedule, as measured by Transporter. Provided, however,

the penalties called for in paragraphs (1) and (2) below will

not apply if such penalties were the result of such Shipper's

gas being bumped by and intra-day nomination pursuant to Section

3.4(c) of these General Terms and Conditions.

(1) An OBA Party shall pay a daily overrun charge equal to the

daily overrun charge shown in Tennessee Gas Pipeline's

Tariff applicable to Rate Schedule LMS for that portion of

a daily variance that exceeds the greater of ten percent

(10%) or 50 Dth of the daily limit. The daily limit shall

be (i) the scheduled daily quantity applicable to a Receipt

or Delivery Point(s) as specified in the Customer

Nomination Form(s) and (ii) the DDQ specified in the OBA.

On any day that an OBA Party takes gas in excess of the

daily limit applicable to a Delivery Point, without the

prior consent of Transporter, such OBA Party shall be

subject to an Unauthorized Overrun Charge of fifteen

dollars ($15.00) for each dekatherm of excess volumes taken

or delivered beyond the greater of ten percent (10%)

allowable variation or 50 Dth.

(2) Any Shipper delivering gas at a point not subject to an OBA

agreement shall pay a daily overrun charge equal to the

daily overrun charge shown in Tennessee Gas Pipeline's

Tariff applicable to Rate Schedule LMS for that portion of

the daily variance that exceeds the greater