Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

First Revised Sheet No. 172 First Revised Sheet No. 172 : Effective

Superseding: ORIGINAL SHEET NO. 172

FORM OF SERVICE CONTRACT (FT)

(continued)

ARTICLE VIII

BILLINGS AND PAYMENT

Transporter shall bill and Shipper shall pay all rates and

charges in accordance with Section 5 and 6, respectively, of the

General Terms and Conditions of Transporter's FERC Gas Tariff.

ARTICLE IX *

TAXES

Shipper agrees to pay the amount of any tax and/or any

increase of any additional tax (as tax and additional tax is

defined in the next sentence hereof) which Transporter shall be

required to pay. The term "tax" and "additional tax" shall mean

collectively any sales (wholesale or retail), transactions,

occupation, privilege license or franchise, service, production,

severance, gathering, transmission, export or excise tax,

assessment, fee, gross receipts or other exaction, whether of the

kind herein enumerated, or otherwise (not including income, excess

profits, capital stock, state franchise or general property taxes)

hereafter levied, accessed or fixed by the United States or any

state or other governmental authority, measured by, in respect of

or applicable to the natural gas to be delivered by Transporter to

Shipper under this Contract, and which Transporter may be liable

for in any month either directly or indirectly through any

obligation of Transporter to reimburse others.

* This provision presently applies to the Alabama Utility Gross

Receipts Tax. Taxes collected pursuant to this Article shall

not be included in Transporter's FERC cost of service used for

the design of jurisdictional rates.