Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

First Revised Sheet No. 153 First Revised Sheet No. 153 : Effective

Superseding: ORIGINAL SHEET NO. 153

GENERAL TERMS AND CONDITIONS (Continued)

party, the receiving party shall immediately notify

Transporter so that corrective action can be taken. In

no event shall the receiving party utilize such

information to the detriment of the transmitting party

or any other party, or otherwise convey the substance

of such transmission to any third party.

(i) Security Breaches - Any Shipper or other party using

the EBB agrees to notify Transporter promptly if there

is any indication that a security breach may have

occurred with regard to the EBB system, and to make any

changes in passwords or other changes necessary to

ensure the continued integrity of the EBB system.

(j) Merchant/Marketing Affiliate - To the extent

Transporter provides information related to

transportation of natural gas, gas sales and marketing

to its marketing affiliate(s), including Merchant,

Transporter will contemporaneously disseminate that

information to all current and potential shippers

through the use of its EBB. This information will be

updated on a daily basis and will be made available to

the public seven (7) days a week. To the extent

Transporter offers a discount rate for transportation

to its marketing affiliate(s), including Merchant, then

Transporter will contemporaneously make available the

information regarding the discount offer to all current

and potential Shippers. Transporter will

electronically disseminate this information on its EBB.

35. IT REVENUE CREDITING

The rates and charges for services performed under Rate

Schedules FT and FT-SG ("Affected Services") shall be

adjusted upon the effective date of Transporter's Tariff in

FERC Docket No. RS92-27 to reflect the flow through of

ninety percent (90%) of all revenue in excess of the level

of cost allocated to IT services as approved by the

Commission in Transporter's rate filing at FERC Docket No.

RP92-237, or any other subsequent rate filing, received by

Transporter for transportation service performed by it under

Rate Schedule IT, net of amounts recovered from the

application of the take-or-pay or transition surcharge rate

and the ACA surcharge rate ("IT Revenue"). Such IT Revenue

flow through shall be allocated among all Affected Services

pro rata, based on the ratio of each customer's Contract

Demand to the total of all Contract Demand for all Affected

Services. The pro rata share of such IT Revenue crediting

shall be reflected on each customer's bill for the month

following the month in which the IT Revenue is received.