Trunkline Gas Company

First Revised Volume No. 1

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Effective Date: 09/01/1994, Docket: RP94-164-000, Status: Suspended

First Revised Sheet No. 241F First Revised Sheet No. 241F : Suspended

Superseding: Sub Original Sheet No. 241F

GENERAL TERMS AND CONDITIONS

(Continued)

27. TRANSITION COSTS (Continued)

event service to a Shipper which had paid

IST Reservation Surcharges or IST

Volumetric Surcharges has terminated, a

refund shall be provided rather than a

credit.

(b) In the event Trunkline's recoveries under

IST Surcharges shall be less than its IST

Costs, Trunkline shall be permitted to

apply any or all of the following

procedures in such combination as it may

determine will recover its IST Costs:

(1) Trunkline may reinstate, without

further suspension or condition, the

IST Surcharges on a month to month

basis until the full amount of IST

Costs has been recovered and in the

event such reinstatement shall result

in any excess recoveries during the

reinstatement period, the calculation

of the amount of such excess and the

crediting of such excess shall be

conform to the procedures specified

in Section 27.3(B)(1)(f)(i)(a); and

(2) Trunkline may reduce, by the amount

of any deficiency in its collection

of IST Costs or portion thereof (to

the extent the deficiency has not

been applied to extinguish another

obligation) all or a portion of: (a)

the amount of any refunds due under

Section 27.1(F) hereof; and (b) the

amount of any recovery in excess of

transition costs otherwise

encompassed by Section 27 hereof.