CNG Transmission Corporation

Second Revised Volume No. 1

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

Sub. First Revised Sheet No. 388 Sub. First Revised Sheet No. 388 : Superseded

Superseding: Sub. Original Sheet No. 388

GENERAL TERMS AND CONDITIONS

TCRA/FAP Carrying Charge Calculations

and (iii) increased or decreased for exchange

transactions and transportation imbalance cost

adjustments; and (iv) adjusted for the

difference, if any, between the rate used for

storage gas, and the rate that would be effective

for storage gas if a rolling weighted average

inventory costing methodology had been used.

2. Carrying charge rate. Pipeline will compute a

monthly carrying charge rate by stating on an

annual basis the applicable calendar quarterly

rate prescribed in Section 154.501(d)(1) of the

Commission's regulations, dividing the annual

rate by 365, or 366 if a leap year, to compute a

daily interest rate, expressed to the nearest one

ten-thousandth of one percent; and multiplying

the daily interest rate by the number of days in

the applicable month, to compute a monthly rate,

expressed to the nearest one-one hundredth of one

percent.

34. TRANSFERS OF STORAGE INVENTORY OR SERVICE ENTITLEMENTS

34.1 Limitations.

A. Any Customer under Pipeline's Rate Schedule GSS or

GSS-II ("Transferring Customer") may transfer all or

any part of its injection entitlements, withdrawal

entitlements, or storage inventory to any other

Customer that has also executed a Service Agreement

providing for storage service under Rate Schedule GSS

or GSS-II ("Receiving Customer"), including Service

Agreements executed through the release of storage

service under Section 23 of the General Terms and

Conditions of this Tariff. Such transfer will be

permitted only to the extent that it does not impair

Pipeline's current or future operations, or curtail

current or future service to any firm Customer at a

Primary point. Pipeline may issue operational flow

orders limiting Customers' entitlements under this

Section 34, as set forth in Section 11B of the General

Terms and Conditions. Subject to the limitations of

this Section 34, Pipeline will permit transfers in

whole or in part.