Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

Second Revised Sheet No. 133 Second Revised Sheet No. 133 : Effective

Superseding: FIRST REVISED SHEET NO. 133

GENERAL TERMS AND CONDITIONS (Continued)

24.1 Funding Services: Funding Services shall include all

services under Rate Schedules shown on Sheet No. 4 of

Transporter's FERC Gas Tariff.

24.2 (a) Filing of Annual Charge Rate Adjustment: The

effective rates for Funding Services under Rate

Schedules shown on Sheet No. 4 of Transporter's FERC

Gas Tariff shall be the Rate After Current Adjustment

for each applicable Rate Schedule reflecting the

Current Annual Charge Rate Adjustment under this

Section 24.

(b) Effective Date of Adjustment: The Effective Date of

Adjustment for each Annual Charge Rate Adjustment

filed pursuant to this Section 24 shall be October 1

of each year. The Annual Charge Rate Adjustment shall

become effective on the Effective Date of Adjustment

without suspension or refund obligation.

(c) Filing Procedure: At least thirty (30) days prior to

the Effective Date of Adjustment, Transporter shall

file with the FERC and post, as defined in Section

154.16 of the Commission's Regulations, revised

Tariff Sheet No. 4 to Volume No. 1 of Transporter's

FERC Gas Tariff, reflecting the Current Annual Charge

Rate Adjustment.

24.3 Current Annual Charge Rate Adjustment: The current Annual

Charge Rate Adjustment shall be the unit amount, adjusted as

necessary for heating value and pressure base, which the

FERC orders to be effective for the fiscal year commencing

on the Effective Date of Adjustment.

24.4 Retention of Revenues Collected Under Annual Charge Rate

Adjustment: Transporter shall retain all revenues

collected under this Section 24. Except as provided by this

Section 24, Transporter shall not have the right to seek to

recover in any proceeding under Section 4(e) of the Natural

Gas Act any Annual Charges recorded in its FERC Account No.

928.

25. INCORPORATION IN RATE SCHEDULES AND TRANSPORTATION CONTRACTS

These General Terms and Conditions are incorporated in and are a

part of Transporter's Rate Schedules and Transportation

Contracts excluding Rate Schedule S.