Trunkline Gas Company

First Revised Volume No. 1

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Effective Date: 09/01/1993, Docket: RS92- 25-005, Status: Effective

Sub Original Sheet No. 226 Sub Original Sheet No. 226 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

25. TAKE OR PAY SETTLEMENT COST SURCHARGE

25.1 Purpose

This Section 25 establishes a Take-or-Pay (TOP) Settlement Cost

Surcharge for the purpose of recovering certain TOP Settlement

Costs as defined below through a TOP Fixed Surcharge and through a

TOP Volumetric Surcharge.

25.2 Definitions

The following defines certain terms as they are used in this

Section 25:

(A) Take-or-Pay (TOP) Settlement Costs shall mean actual

payments made in cash by Trunkline, or amounts for which

Trunkline has incurred a written or verbal obligation or

commitment to pay, to a first seller of Natural Gas

(Producer/Supplier) for buyouts, buydowns, contract

reformation or payments to resolve or respond to litigation

or arbitration proceedings relating to price and take

issues.

(B) TOP Fixed Surcharge: The TOP Fixed Surcharge is the total

TOP amount as shown in column (1) or the currently effective

fixed monthly charge as shown in column (2), if applicable,

as stated in Tariff Sheet Nos. 14 and 15.

(C) As used for purposes of this Section 25, the term

Buyer/Shipper shall mean the entities identified on

effective Tariff Sheet Nos. 14 and 15. Buyers/Shippers are

customers that were served under Trunkline's sales Rate

Schedules G-1, G-2, SG-1, SG-2, P-1 and P-2 under the Former

Tariff and customers with Transportation Agreements under

Rate Schedule PT-Firm of the Former Tariff.

25.3 Applicability

The TOP Fixed Surcharge amounts as shown in column (1) on Tariff

Sheet Nos. 14 and 15 shall apply, as specified herein below, upon

the effectiveness of this Section 25 to those Buyers and persons

identified on such Tariff Sheets.