Trunkline Gas Company

First Revised Volume No. 1

Effective Date: 04/05/1996, Docket: RP96-170-000, Status: Effective

First Revised Sheet No. 227 First Revised Sheet No. 227 : Effective

Superseding: Sub Original Sheet No. 227

GENERAL TERMS AND CONDITIONS

(Continued)

25.TAKE OR PAY SETTLEMENT COST SURCHARGE (Continued)

25.4 Recovery of TOP Fixed Surcharge

(A) The amount to be recovered from Buyer or Shipper through the

TOP Fixed Surcharge shall be reflected on Tariff Sheet

Nos. 14 and 15. Carrying charge reconciliation amounts for

the period February 1, 1991 until November 1, 1991 shall be

included with the total principal amounts and reflected on

Tariff Sheet Nos. 14 and 15.

(B) Each Buyer/Shipper shall have the option, in lieu of payment

of the total TOP Fixed Surcharge amount, of paying thirty-six

(36) monthly consecutive payments equal to 1/36th of such

amount. Carrying charges on the total TOP Fixed Surcharge

amounts shall be calculated and included on each monthly

invoice for those Buyers/Shippers electing the thirty-six

(36) month payment option. Notwithstanding such election,

any Buyer/Shipper may, at any time, pay the entire amount of

its unpaid share of TOP Fixed Surcharges to Trunkline with no

further obligation for carrying charges.

Notwithstanding any such election, if Buyer's/Shipper's

contract terminates during the period in which such payments

are to be made, Trunkline shall invoice Buyer/Shipper for the

then current unpaid balance due which shall become due and

payable one day prior to the expiration of Buyer's/Shipper's

contract. Upon receipt of such invoice, Buyer/Shipper may

elect to continue making payments according to its prior

elections by continuing to do so. Such action shall

constitute Buyer's/Shipper's irrevocable agreement to pay

such sums without condition or qualification. For purposes

hereof, any conversion of sales customers under the Former

Tariff shall not constitute a contract termination and the

amounts shown on Tariff Sheet Nos. 14 and 15 shall apply to

Shipper under the contract as converted.

those Buyers/Shippers electing the thirty-six (36) month

amortization option shall be determined in accordance with

Section 154.501(d) of the Commission's Regulations.