Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

Third Revised Sheet No. 111 Third Revised Sheet No. 111 : Effective

Superseding: SUB SECOND REVISED SHEET NO. 111

GENERAL TERMS AND CONDITIONS (continued)

Prior period adjustment time limits, excluding governmental

required rate changes, should be six (6) months from the date of

the inital transportation invoice and 7 months from the date of

initial sales invoice to which the error pertains, unless (i)

the parties mutually agree otherwise, or (ii) the claimed error

is the result of a deliberate omission or misrepresentation by

either party or a mutual mistake of fact. In all instances in

which a claim for adjustment is made, the Shipper or

Transporter, as applicable shall have a 3 month rebuttal period.

Parties' other statutory or contractual rights shall not

otherwise be diminished by this standard.

7. POSSESSION OF GAS

Unless otherwise provided in the transportation contract or

applicable Rate Schedule, as between Transporter and Shipper,

Shipper shall be deemed to be in exclusive control and

possession of the gas to be transported (i) prior to receipt by

Transporter at the Receipt Point(s), and (ii) after delivery by

Transporter at the Delivery Point(s); otherwise, Transporter

shall be in exclusive control and possession of the gas. The

Party which shall be in exclusive control and possession of the

gas shall be responsible for all injury or damage caused thereby

to any third party. In the absence of negligence or willful

misconduct on the part of Transporter, Shipper waives any and

all claims and demands against Transporter, its officers,

employees or agents, arising out of or in any way connected with

(i) the quality, use or condition of the gas after delivery from

Transporter for the account of such Shipper, (ii) any losses or

shrinkage of gas during or resulting from transportation

hereunder, and (iii) all other claims and demands arising out of

Transporter's performance of its duties hereunder. In any

event, Transporter's shall not be liable for any damages

hereunder other than compensatory damages.

8. PRESSURES

Unless otherwise provided in the applicable Rate Schedule, or

executed Service Contract, this Section 8 shall apply to all

transportation service.