Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

Effective Date: 10/01/1997, Docket: GT97- 71-000, Status: Effective

First Revised Sheet No. 104A First Revised Sheet No. 104A : Effective

Superseding: ORIGINAL SHEET NO. 104A

GENERAL TERMS AND CONDITIONS (continued)

(i) With respect to all temporary releases of firm service,

Releasing Shippers shall remain responsible for payment

of the reservation charge. Based on the terms of the

Released Transportation Service Contract, the Releasing

Shipper shall receive a demand credit equaling the

demand dollars which Transporter bills to the

Replacement Shipper in the same month that such bill is

rendered to the Replacement Shipper. A demand rate for

the purposes of this Section 3.17 shall consist of (i)

the base demand rate, and (ii) all applicable

surcharges. Any discount from said rate shall be

deemed to be made first from the reservation charge and

then from the surcharges. Therefore, a Releasing

shipper paying a discounted rate is only entitled to

receive any revenues from the release of its capacity

that exceed the amount of the applicable surcharges.

(j) Transporter shall bill the Replacement Shipper in

accordance with Section 5 of the General Terms and

Conditions of its FERC Gas Tariff based upon the rates,

harges and surcharges incorporated into the Released

Transportation Service Contract. The commodity charges

for the Replacement Shipper shall include the maximum

commodity rate under the applicable rate schedule,

including all adjustments. Except with respect to

charges for imbalance penalties or volumetric

surcharges, if the Replacement Shipper fails to pay all

or any portion of any bill, by the due date specified

on the invoice, Transporter shall include on the next

invoice to the Releasing Shipper all unpaid amounts up

to the amount of the Releasing Shipper's reservation

charge,including any applicable surcharges.