Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

Substitute Original Sheet No. 85C Substitute Original Sheet No. 85C : Effective

Superseding: Original Sheet No. 85C

GENERAL TERMS AND CONDITIONS (continued)

(d) Cash-Out Provision -

(i) Where, at the end of any month, shipper has a net

imbalance with respect to its deliveries during

the proceeding month then transporter shall send

shipper a statement prior to the 9th business day

of the following month that details the daily

and/or monthly imbalance quantity, the credit due

Shipper if deliveries are less than scheduled

nominations, or a bill for the amount due

Transporter if deliveries are greater

than scheduled nominations,

subject to the Billing and Payment Articles set

forth under the General Terms and Conditions of

Transporter's FERC Gas Tariff.

(ii) Transporter shall determine the Cash-Out price,

before adjustments, for each upstream pipeline

that has interconnecting facilities with

Transporter in accordance with the Cash-Out

procedures under the currently effective tariff

of each such upstream pipeline.

(iii) A Cash-Out price shall be determined for

each Delivery Point on Transporter. The Cash-Out

price shall be a weighted average price determined

by calculating a supply percentage for each such

upstream pipeline based upon the amount of gas