Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

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

First Revised Sheet No. 201 First Revised Sheet No. 201 : Effective

Superseding: ORIGINAL SHEET NO. 201

FORM OF SERVICE CONTRACT (IT)

(continued)

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, assessed 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.

ARTICLE X

GENERAL TERMS AND CONDITIONS

This Contract shall be subject to the effective provisions of

Transporter's Rate Schedule IT and to the General Terms and

Conditions incorporated therein, as the same may be changed or

superseded from time to time in accordance with the rules and

regulations of the FERC, which Rate Schedule and General Terms and

Conditions are incorporated herein by reference and made a part

hereof for all purposes.

ARTICLE XI

REGULATION

This Contract shall be subject to all applicable and lawful

governmental statutes, orders, rules and regulations and is

contingent upon the receipt and continuation of all necessary

regulatory approvals or authorizations upon terms acceptable to

Transporter. This Contract shall be void and of no force and effect

if any necessary regulatory approval is not so obtained or continued.

All parties hereto shall cooperate to obtain or continue all

necessary approvals or authorizations, but no party shall be

* This provision presently applies to the Alabama Utility Gross

Receipts Tax.