CNG Transmission Corporation

Second Revised Volume No. 1

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Effective Date: 08/25/1999, Docket: RP99-446-001, Status: Effective

Substitute Original Sheet No. 397 Substitute Original Sheet No. 397 : Superseded

GENERAL TERMS AND CONDITIONS

Discount Terms

36. DISCOUNT TERMS

In the event that Pipeline agrees to discount its maximum

rates for service under Rate Schedules contained in this

Volume No. 1, then Pipeline and Customer may agree to the

types of discounts specified herein without such

discounts constituting a material deviation from

Pipeline's form of service agreement. Pipeline and

Customer may agree that a specified discounted rate will

apply: (1) only to specified quantities under the

service agreement; (2) only if specified quantities are

achieved or only with respect to quantities below a

specified level; (3) only during specified periods of

time; (4) only to (a) specified point(s), combination of

points, market(s), or other defined geographical area(s);

and/or (5) only in a specified relationship to the

quantities actually delivered (i.e. that the maximum rate

will be adjusted in a specified relationship to

quantities actually delivered). Notwithstanding the

foregoing, no discounted rate shall be less than the

applicable minimum rate.