CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 06/15/1998, Docket: RP98- 91-007, Status: Effective

2nd Sub. Third Revised Sheet No. 361A 2nd Sub. Third Revised Sheet No. 361A : Superseded

Superseding: Original Sheet No. 361A

GENERAL TERMS AND CONDITIONS

Transition Cost Adjustments

18.4 Upstream Supplier Transition Costs. Pipeline

shall not be responsible for any transition costs

associated with upstream pipeline capacity that

Pipeline has assigned pursuant to Order Nos. 636

et seq. If Pipeline's upstream suppliers assess

Pipeline for a portion of their Transition Costs

under Order Nos. 636 et seq., and Pipeline is not

expressly authorized under other provisions of

this Tariff to recover such costs, then Pipeline

shall be entitled to make a limited Section 4

filing to direct bill such costs to its

Customers, in accordance with the Commission's

order issued March 31, 1993, in Docket No.

RP93-90-000, et al.

18.5 Accelerated Cost Recovery Mechanism ("ACRM")

A. For the thirty Month period commencing July

1, 1998, Pipeline shall assess a reservation

surcharge, designated as the ACRM Surcharge,

on all Rate Schedule FT and FTNN services.

The revenues collected through the ACRM,

excluding interest, will be applied to

reduce Pipeline's gathering rate base.

B. The ACRM Surcharge will be set forth on

Sheet Nos. 32 and 33 of Pipeline's Tariff.