Carnegie Interstate Pipeline Company

Original Volume No. 1

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Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 140A Original Sheet No. 140A : Effective

Superseding: Original Sheet No. 140A

GENERAL TERMS AND CONDITIONS

(Continued)

shall file a report,

together with necessary supporting

workpapers, showing the total amounts

billed or refunded.

31.4 New Facilities Costs

For the purposes of this Section 31, new

facilities costs shall be those capital costs and

other costs associated with new facilities required

to provide restructured services pursuant to FERC

Order No. 636. CIPCO shall have the right to make a

filing with the FERC under Section 4 of the Natural

Gas Act to recover 100% of its new facilities costs.

31.5 Stranded Costs

For the purposes of this Section 31, stranded

costs shall include, without limitation, those costs

associated with facilities, contracts, and capacity

that are no longer required as a result of CIPCO's

restructuring of services pursuant to FERC Order No.

636, and the costs of gathering facilities made

uneconomic as a result of CIPCO's restructuring of

services. Except with regard to capacity on CIPCO's

pipeline system for which CIPCO has already received

an exit fee, CIPCO shall have the right to make

filings with the FERC under Section 4 of the Natural

Gas Act to recover 100% of its stranded costs.

32. ACCOUNT NO. 858 COSTS

32.1 CIPCO shall have the right, until June 30, 1994,

to post costs to the subaccount of its Account No.

186 (used by CIPCO to track over and underrecoveries

of Account No. 858 costs pursuant to Section 26 of

the General Terms and Conditions of superseded Second

Revised Volume No. 1 of CIPCO's FERC Gas Tariff) and

to direct bill or refund to its former customers

under Rate Schedules CDS and LVWS through limited

filings with the FERC under Section 4 of the Natural

Gas Act, any net over- or under-recoveries of Account

No. 858 costs includable in such subaccount of

Account No. 186 attributable to amounts billed to

CIPCO by Texas Eastern, including amounts billed to

CIPCO as Account No. 858 costs or Texas Eastern

stranded upstream pipeline costs under CIPCO's pre-

October 1, 1993 Rate Schedule CDS Texas Eastern

contract.