CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 01/05/1998, Docket: CP96-492-008, Status: Effective

First Revised Sheet No. 394 First Revised Sheet No. 394 : Superseded

GENERAL TERMS AND CONDITIONS

Conditions Applicable to Storage Services

35. CONDITIONS APPLICABLE TO STORAGE SERVICES

35.1 DETERMINATION OF DELIVERIES, INJECTIONS AND WITHDRAWALS

The quantities of gas injected into storage for Customer's

account and withdrawn from storage and delivered to

Customer on any Day shall be determined by Pipeline's

meters at or near the points of delivery when gas is

delivered to Customer or Pipeline under a storage service

Rate Schedule only. When gas is delivered to Customer or

Pipeline under a storage service Rate Schedule and other

rate schedule(s) on the same Day, then the gas delivered

under the storage service Rate Schedule shall be the

quantity scheduled for injection or withdrawal on such Day

by Customer and Pipeline, subject to any adjustments

required under Rate Schedule FTNN. Pipeline shall keep

accurate records of quantities injected and withdrawn for

Customer's account, and of Customer's Storage Gas Balance,

which records shall be made available to Customer at its

written request.

35.2 BILLING ADJUSTMENTS

A. Demand and Storage Capacity Charge Adjustments. If

during the Summer Period, Pipeline is unable to inject

into storage quantities of gas nominated during such

period by Customer for injection and tendered to Pipeline

at any Primary Receipt Point specified under a storage

Service Agreement, then the Storage Demand Charge and the

Storage Capacity Charge shall be reduced in the following

manner: If, at the end of the Summer Period, Customer's

Storage Gas Balance is less than Customer's Storage

Capacity due solely to Pipeline's inability to inject gas

in accordance with Section 7 of the applicable Rate

Schedule, then the Storage Demand Charge applicable for

the current Storage Year shall be that part of the total

Storage Demand Charge herein provided which Customer's

Storage Gas Balance as of such date bears to Customer's

Storage Capacity. The same proportionate reduction shall

be made in the Storage Capacity for the same one-year

period.

B. Demand Charge Adjustment. If Pipeline fails or is unable

to deliver during any one or more Day the quantity of

natural gas which Customer desires to take at a Primary

Delivery Point, up to the maximum quantity which Pipeline

is obligated by the Service Agreement to deliver to

Customer at such point, subject to the limitations of

Section 8 of the applicable Rate Schedule, then the

Storage Demand Charge payable hereunder for that month

shall be reduced by an amount equal to that percentage of

the Demand Charge Adjustment set forth at the currently