Mid Louisiana Gas Company

Third Revised Volume No. 1

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Effective Date: 12/31/1996, Docket: RP97-196-001, Status: Effective

Substitute First Revised Sheet No. 188 Substitute First Revised Sheet No. 188 : Effective

Superseding: ORIGINAL SHEET NO. 188

28. DISCOUNT POLICY

To the extent that Pipeline elects to provide

service pursuant to this FERC Gas Tariff at a discounted

rate, transportation rate components shall be discounted

in the fillowing order:

1) The Reservation component shall be the first

component discounted and shall be the only component

discounted until such componenet has been reduced to

the level established as the Minimum Rate set forth

on Sheet No. 4 of this FERC Gas Tarif; but, in no

case, shall Pipeline discount to a level which would

allow the Reservation component to equate to less

than a Minimum Rate specified by Pipeline on Sheet

No. 4 of this FERC Gas Tariff.

2) The Commodity component shall be the next component

discounted and it shall be discounted until such

component has been reduced to the level established

as Minimum Rate set forth on Sheet No. 4 or 4a as

applicable, of this FERC Gas Tariff; but, in no case,

shall Pipeline discount to a level which would allow

the Commodity component to equate to less than the

Minimum Rate specified by Pipeline on Sheet No. 4 or

4a of this FERC Gas Tariff.