Enbridge Pipelines (AlaTenn) Inc.

Third Revised Volume No. 1

Effective Date: 10/01/2001, Docket: GT01- 31-000, Status: Effective

Original Sheet No. 181 Original Sheet No. 181 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

(b) Amounts billed by Tennessee to Transporter pursuant to

Section XIX of the General Terms and Conditions contained in

Tennessee's Tariff that becomes effective upon the

implementation of restructured services in Docket No. RS92-

27-000 ("Tennessee Gas Costs"); and

Unrecovered Transportation Cost Account pursuant to Section

33.4 of these General Terms and Conditions.

33.2 Recovery of Transporter Gas Costs: Transporter will terminate its

existing Purchased Gas Cost clause effective on the implementation

date of Transporter's filing in FERC Docket No. RS92-27

("Implementation Date"). The Unrecovered Gas Cost Account

balance, including any amounts subsequently billed or refunded,

regardless of when such amounts are received, applicable to the

period the PGA was in effect, on the Implementation Date shall be

billed/refunded in a lump sum amount to Shippers that were

formerly bundled jurisdictional sales customers who had contracted

to purchase gas from Transporter under Transporter's Rate

Schedules G and SG on the day prior to the Implementation Date

("Affected Shippers"). Transporter will invoice/refund in a lump

sum amount to Shippers for Transporter's Gas Costs attributable to

each Shipper as follows:

(a) Each Affected Shipper will be allocated a portion of

Transporter's demand and commodity Unrecovered Purchased Gas

Cost Account balance on the Implementation Date, including

any amounts subsequently billed or refunded applicable to

the period the PGA was in effect, plus adjustments to

reflect changes in the accruals and estimates for billing

dispute settlements, carrying charges and other amounts that

are known and measurable within the six-month period

following the Implementation Date.