CNG Transmission Corporation

Second Revised Volume No. 1

Effective Date: 01/05/1998, Docket: RP97-406-005, Status: Effective

Sub. Third Revised Sheet No. 364 Sub. Third Revised Sheet No. 364 : Superseded

Superseding: Sub. Second Revised Sheet No. 364

GENERAL TERMS AND CONDITIONS

Rate Schedules and Service Agreements

or regulations of any such duly constituted

authorities.

E. The interpretation and performance of any Service

Agreement executed hereunder shall be in accordance

with the laws of the State of West Virginia, without

recourse to the law regarding conflict of laws.

21.4.. Negotiated Rates.

A. Notwithstanding anything to the contrary in this

Tariff, Pipeline may charge a Negotiated Rate for

service under any rate schedule to any Customer that

has access to serve at the rates set forth in the

applicable rate schedule and agrees to pay such

Negotiated Rate. Pipeline's maximum applicable tariff

rate ("Recourse Rate") is available for any Customer

that does not agree to a Negotiated Rate with

Pipeline.

B. A Negotiated Rate shall mean a rate for service where,

for some portion of the contract term, one or more of

the individual rate components exceeds the maximum

charge, or is less than the minimum charge, for such

component.

C. Where a Negotiated Rate, when calculated on a 100%

load factor basis, exceeds Pipeline's Recourse Rate

for that service, for the purposes of curtailment or

interruption pursuant to Section 11.3.A, above, a

shipper paying said Negotiated Rate would be

considered to have paid the Recourse Rate for such

services. For purposes of Section 24.2.A, below, the

highest rate that Customer must match in order to

continue to receive service is the Recourse Rate

applicable to such service.

D. In order to effectuate a Negotiated Rate, Pipeline

shall file a numbered tariff sheet in this Volume No.

1, stating: Customer's exact legal name, the

Negotiated Rate or rate formula, applicable Rate

Schedule, Receipt and Delivery Points, contract

quantities, and an affirmation that the affected

service agreement(s) does not deviate in any material

aspect from the form of service agreement in this

Tariff.