CNG Transmission Corporation

Second Revised Volume No. 1

Effective Date: 07/01/1994, Docket: RP94- 96-000, Status: Effective

Alternate First Revised Sheet No. 355 Alternate First Revised Sheet No. 355 : Superseded

Superseding: Substitute Original Sheet No. 355

GENERAL TERMS AND CONDITIONS

Fuel Adjustment Provision

16.8 Phase-Out Provision. If at any time, all or a portion of

this Section 16 is rescinded, terminated or eliminated by

Pipeline or a third party for any reason, Pipeline shall be

entitled to file and place into effect substitute tariff

provisions for the recovery of fuel, company used and lost

and unaccounted for gas on a current basis. Pipeline shall

direct bill or refund, on a pro-rata basis, the remaining

balance in the Unrecovered Fuel Cost Reimbursement

Subaccount based on the billing determinants used in

Pipeline's most recent TCRA filing.

17. LNG AMORTIZATION SURCHARGE

Pipeline is authorized to collect from certain Customers an

amount billed to Pipeline by Consolidated System LNG Company.

The amount to be billed to Pipeline and the amounts payable by

each affected Customer are set forth in Appendix I of the

January 28, 1988, order of the FERC, Consolidated System LNG

Company, 42 FERC 61,078, as modified on Sheet No. 17 of the

FERC Gas Tariff of Consolidated System LNG Company, Original

Volume No. 1. The applicable LNG Amortization Surcharge shall

be payable by such current Customers under only one of the

following Rate Schedules, as designated by Pipeline: FT, FTNN,

GSS or GSS-II. Any former sales customer that took service

under the terms of Pipeline's FERC Gas Tariff, First Revised

Volume No. 1, but assigned its rights to capacity to third

parties shall continue to pay the LNG Amortization Surcharge as

a continuing and surviving obligation under the service

agreements that were assigned.

18. TRANSITION COST ADJUSTMENTS

This Section provides Pipeline with authorization to

recover from its Customers all prudently incurred costs

resulting from Pipeline's restructuring of services in

accordance with Order Nos. 636 et seq. "Transition costs," as

defined herein, include (1) the balance of and out-of-period

adjustments to Pipeline's Account No. 191, Unrecovered Purchased

Gas Costs and certain amounts in Pipeline's Account No. 186; (2)

stranded costs under Order No. 636 et seq. or their progeny; (3)

the costs of any new facilities required to be installed or

contracts undertaken in response to Order Nos. 636 et seq.; and

(4) transition costs incurred by the Pipeline from upstream

pipeline suppliers.