Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

Second Revised Sheet No. 110 Second Revised Sheet No. 110 : Effective

Superseding: SUB FIRST REVISED SHEET NO. 110

GENERAL TERMS AND CONDITIONS (continued)

6.2 Remedies for non-payment: Should Shipper fail to pay all of

the amount of any invoice as herein provided when such amount

is due, interest on the unpaid portion of the invoice shall

accrue from the due date until the date of payment at the

interest rate calculated according to Section 154.67(c)(2) of

the FERC's regulations. If such failure to pay continues for

thirty (30) days after payment is due and Transporter has

provided Shipper and the Federal Energy Regulatory Commission

with at least fifteen (15) days notice that service will

terminate due to the non-payment, Transporter in addition to

any other remedy it may have under the executed Services

Contract may suspend further delivery of gas until such amount

is paid. Provided, however, that if Shipper in good faith

shall dispute the amount of any such invoice or part thereof

(and provides Transporter written documentation as to the

basis for the dispute) and shall pay to Transporter such

amounts as it concedes to be correct and at any time

thereafter within thirty (30) days of a demand made by

Transporter shall furnish good and sufficient surety bond,

guaranteeing payment to Transporter of the amount ultimately

found due upon such invoices after a final determination which

may be reached either by agreement or judgment of the courts,

as may be the case, then Transporter shall not be entitled to

seek or suspend further delivery of gas unless and until

default be made in the conditions of such bond.

6.3 Adjustment of underpayment, overpayment or error in invoicing:

If it shall be found that Shipper has been overcharged or

undercharged in any form whatsoever under the provisions of the

executed Service Contract, and Shipper shall have actually paid

the invoices containing such overcharge or undercharge, then

within thirty (30) days after the final determination thereof,

Transporter shall refund the amount of any such overcharge with

interest thereon from the time such overcharge was paid to the

date of refund the interest rate calculated according to

Section 154.67(c)(2) of FERC's regulations and Shipper shall

pay the amount of any such undercharge, but without interest.