Florida Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 06/25/2001, Docket: RP01-430-000, Status: Effective

Second Revised Sheet No. 135A Second Revised Sheet No. 135A : Superseded

Superseding: First Revised Sheet No. 135A

GENERAL TERMS AND CONDITIONS

(continued)

h. Order of Discounting. If Transporter charges a usage

and/or reservation charge less than the maximum rate,

then the order of discounting shall be the GRI

Surcharge, Base Tariff Rate, Unit Fuel Surcharge, ACA

Surcharge, TCR Usage Surcharge and TCR & 636

Reservation Surcharge, as applicable.

i. Types of Discounts. From time to time Shipper and

Transporter may agree in writing on a level of

discount of the otherwise applicable rates and

charges in addition to a basic discount from the

stated maximum rates. For example, Transporter may

provide a specific discounted rate:

(1) to certain specified quantities under the

Service Agreement;

(2) if specified quantity levels are actually

achieved or with respect to quantities below a

specified level;

(3) to production reserves committed by the

Shipper;

(4) during specified time periods;

(5) to specified points of receipt, points of

delivery, supply areas, transportation paths or

defined geographical areas; or

(6) in a specified relationship to the quantities

actually transported (i.e. that the rates shall

be adjusted in a specified relationship to

quantities actually transported).

(7) to include a provision that if one rate

component which was at or below the applicable

maximum rate or at or above the minimum rate at

the time the discount agreement was executed

subsequently exceeds the applicable maximum

rate or is below the applicable minimum rate

due to a change in Transporter's maximum and/or

minimum rates, such rate component may be

adjusted downward or upward to equal the new

applicable maximum or minimum rate and the

other rate components may be adjusted upward or

downward to achieve the agreed overall rate, so

long as none of the resulting rate components

exceed the maximum rate or are below the

minimum rate applicable to that rate component.

Such changes to rate components shall be

applied prospectively commencing with the date

a Commission order accepts revised tariff

sheets. However, nothing contained herein

shall be construed to alter a refund obligation

under applicable law for any period during

which rates which had been charged under a

discount agreement exceeded rates which

ultimately are found to be just and reasonable.

In all circumstances the discounted rate shall be

between the maximum rate and the minimum rate

applicable to the service provided.