CNG Transmission Corporation

Second Revised Volume No. 1

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

Substitute Original Sheet No. 393 Substitute Original Sheet No. 393 : Superseded

GENERAL TERMS AND CONDITIONS

Transfers of Storage Inventory or Service Entitlements

e. Inventory transfers under this Section

34.4.A.3. shall not be subject to Pipeline's

otherwise applicable Withdrawal Charge.

B. Summer Period. During the Summer Period, Transferring

Customer may transfer any part of its Storage Gas

Balance to Receiving Customer, without associated

withdrawal entitlements. Transferring Customer must

provide Pipeline with 24 hours' prior written notice

of such transfers; Pipeline may elect to consider

requests based on shorter notice when its resources

permit, only after Pipeline reviews any timely

transfer requests. Such notice must state clearly the

inventory quantity to be transferred, and the date on

which the transfer is to be effective. Such notice

must be irrevocable and without conditions.

C. Pipeline may reject any transfer if such transfer

would cause the Storage Gas Balance of Receiving

Customer to exceed that Customer's Storage Capacity,

or if the Storage Gas Balance of Transferring Customer

is less than the quantities proposed to be

transferred, or if such transfer would exceed the

inventory limitations of the applicable Rate Schedule.

D. Pipeline shall have no obligation to permit any

transfer that, when treating Pipeline's obligations

under the Service Agreements of Transferring Customer

and Receiving Customer in the aggregate, would

increase Pipeline's contractual obligations, either on

a daily or a seasonal basis.

E. Pipeline shall have the right to reject any transfer

under this Section if the result of such transfer is,

in Pipeline's sole judgment, to increase Pipeline's

obligation to deliver gas in any capacity-constrained

portion of Pipeline's system.

F. No injection or withdrawal charges shall apply to the

transfer of inventory in place under this Section

34.4; provided, however, that no transfer under this

Section shall affect Transferring Customer's

obligation to have paid the injection charges

applicable to physical injection of such inventory, or

Receiving Customer's obligation to pay applicable

charges upon the eventual physical withdrawal of

transferred inventory.