Trunkline Gas Company

First Revised Volume No. 1

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Effective Date: 11/17/1996, Docket: RP97- 42-000, Status: Effective

Fifth Revised Sheet No. 237 Fifth Revised Sheet No. 237 : Effective

Superseding: Fourth Revised Sheet No. 237

GENERAL TERMS AND CONDITIONS

(Continued)

27.TRANSITION COSTS (Continued)

be stated on effective Tariff Sheet Nos. 6, 7, 8, 9 and 9A of

Trunkline's FERC Gas Tariff, First Revised Volume No. 1, as

the same may change from time to time, and shall become a

part of the stated rates for services provided under such

Rate Schedules. Ten percent (10%) of Trunkline's GSR Costs,

including carrying charges, shall be recovered through the

rates applicable to interruptible service under Rate

Schedules IT and QNIT, as stated on effective Tariff Sheet

Nos. 10 and 10A, as the same may change from time to time,

and shall become part of the stated rates for service

provided under such Rate Schedule.

Carrying charges on GSR Costs shall be calculated in

accordance with Section 154.501(d) of the Commission's

Regulations.

The provisions of this Section 27.2 shall be fully applicable to

successor, replacement and new Rate Schedules.

(D) Filing Procedure For Initial GSR Cost Collection Period

(1) Trunkline may make one or more rate filings to recover

GSR Costs from Shippers served under Rate Schedules FT,

SST, EFT, QNT, LFT, IT and QNIT. An Initial GSR Cost

Collection Period shall apply to each rate filing

Trunkline makes to recover GSR Costs.

(2) The GSR Reservation Surcharge during the Initial GSR

Cost Collection Period shall be designed to recover the

applicable GSR Costs over the three year Initial GSR

Cost Collection Period using the applicable firm service

design determinants underlying Trunkline's then

effective rates for service under Rate Schedules FT,

SST, EFT, QNT and LFT.

The GSR Reservation Surcharge shall be based on one-

third (1/3) of the applicable GSR Costs to be recovered

pursuant to this Section 27.2. Such GSR Costs shall

include carrying charges for the Initial GSR Cost

Collection Period.