Trunkline Gas Company

First Revised Volume No. 1

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

Second Revised Sheet No. 239 Second Revised Sheet No. 239 : Effective

Superseding: First Revised Sheet No. 239

GENERAL TERMS AND CONDITIONS

(Continued)

27.TRANSITION COSTS (Continued)

Cost Collection Period, as applicable, of this Section 27.2

at the level of firm service applicable to such Shipper at

the effective date hereof, or the effective date of the

Service Agreement, whichever is later. Trunkline will

invoice such amount to affected Shipper in a direct bill

within thirty (30) days after the termination or reduction in

firm service. Invoices pursuant to this Section 27.2(E),

including carrying charges calculated in accordance with

Section 154.501(d) of the Commission's Regulations, shall be

due and payable within ten (10) days of the issuance of such

invoices.

(F) Reconciliation

(1) At the conclusion of the GSR Cost Collection Period,

Trunkline will determine its GSR Costs and the actual

amounts of GSR Reservation Surcharges under Rate

Schedules FT, SST, EFT, QNT and LFT, and, separately,

the actual amounts of GSR Costs recovered through

interruptible Transportation rates under Rate Schedule

IT. For purposes of these calculations, any amount by

which interruptible Transportation rates have been

discounted will serve to decrease the actual amounts of

GSR Costs collected through interruptible rates, and any

amount by which GSR Reservation Surcharges charged to

any Shipper affected by this Section 27.2 have been

discounted pursuant to a discount agreement entered into

prior to the effective date of this Section 27.2, will

serve to decrease the amount of actual GSR Costs

collected through GSR Reservation Surcharges. Any GSR

Exit Fees will be added to the actual amounts of GSR

Costs recovered through GSR Reservation Surcharges.

(2) If Trunkline's collections hereunder shall equal or

exceed its GSR Costs, Trunkline shall file to terminate

further collections hereunder. The amount of any excess

collected shall be repaid to all Shippers affected

hereby in proportion to the principal amount of GSR

Reservation Surcharge payments which they have provided

pursuant to this Section 27.2. Within ninety (90) days

of the termination of collections pursuant to this

Section 27.2, refunds, with applicable carrying charges,