Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

Substitute Third Revised Sheet No. 86 Substitute Third Revised Sheet No. 86 : Effective

Superseding: Third Revised Sheet No. 86

GENERAL TERMS AND CONDITIONS (continued)

scheduled by the Shipper or OBA Party and scheduled by

Transporter for each upstream pipeline, times the

Cash-Out price, before adjustments, of each upstream

pipeline. Each month such Cash-Out price shall be

adjusted by the "Cash-Out Adjustment Factor" as

determined as follows:

(1) When the monthly imbalance quantity is greater

than zero, the Cash-Out Price shall be adjusted

as follows:

Percentage Cash-Out

Monthly Adjustment

Imbalance Factor

>0 - 5% 100% Cash-Out price

>5 - 10% 85% Cash-Out price

>10- 15% 70% Cash-Out price

>15- 20% 60% Cash-Out price

>20% 50% Cash-Out price

(2) When the monthly imbalance quantity is less than

zero, the Cash-Out price shall be adjusted as

follows:

Percentage Cash-Out

Monthly Adjustment

Imbalance Factor

>0 - 5% 100% Cash-Out price

>5 - 10% 115% Cash-Out price

>10- 15% 130% Cash-Out price

>15- 20% 140% Cash-Out price

>20% 150% Cash-Out price

Which price shall be adjusted to include any

transportation or other charges associated with the

upstream pipeline.

(e) Existing Imbalances - Imbalances existing prior to

the effective date of this provision shall be