Florida Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 11/01/1993, Docket: RS92- 16-003, Status: Effective

Original Sheet No. 150 Original Sheet No. 150 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

B. Supply Curtailment

1. Curtailment Process

The provisions of this Section 17B apply where Sales Division

is providing sales service pursuant to Rate Schedule TSS and

is unable to deliver firm sales quantities under Rate

Schedule TSS or another firm sales agreement as a result of

shortfall in Sales Division's supply.

To the extent Sales Division experiences a shortfall in

supply, Sales Division shall curtail deliveries to its firm

sales customers who were being served by such supplies, in

accordance with this Section. Sales Division shall curtail

firm sales by end-use, curtailing first any sales volumes

associated with Priority 9 use. If all uses classified as

Priority 9 have been curtailed and Sales Division is still

experiencing a shortfall, Sales Division shall next curtail

Category 8, then 7, and so on, until Sales Division is in

balance between supplies and sales. Sales Division shall not

curtail a higher priority use hereunder unless it is also

curtailing all lower priority uses. To the extent Sales

Division only needs to curtail part of a particular end-use

category in order to accommodate its supply shortfall, Sales

Division shall prorate the curtailment among all firm sales

customers with requirements in that priority classification.

2. Generally Applicable Provisions

The following provisions shall apply to curtailment of firm

sales and transportation services.

(a) Definitions -- The following terms shall have the

meanings set forth below when used in connection with

this Section 17:

(1) "NGPA" means the Natural Gas Policy Act of 1978.

(2) "School" means a facility, the primary function

of which is delivering instruction to regularly

enrolled students in attendance at such facility.

Facilities used for both educational and

noneducational activities are not included under

this definition unless the latter activities are

merely incidental to the delivery of instruction.