Trunkline LNG Company

Original Volume No. 1

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Effective Date: 12/01/1989, Docket: CP87-418-001, Status: Effective

Original Sheet No. 56 Original Sheet No. 56 : Effective

RATE SCHEDULE PLNG-2 (Continued)

performance under the LNG Contract is to be so resumed. From

such expected date of resumption of the LNG Contract, TLC shall

have the right at any time to limit the operating capacity of

its facilities made available hereunder to the capacity

necessary for the performance by Pan National of agreements to

sell regasified LNG executed on or before the fifteenth day

after the giving of notice of resumption by TLC, to the extent

that such capacity limitations are necessary for performance of

the LNG Contract.

ARTICLE IV *

Rates and Charges

4.1 For services performed or made available hereunder,

Pan National shall pay to TLC an Incremental Cost Charge and a

Cost of Service Charge, beginning with the first month

following the date of initial service hereunder.

4.2 The Incremental Cost Charge for each billing month

shall be the remainder of (a) the reasonable and necessary

operation and maintenance expenses incurred and accrued by TLC

during the billing month, including but not limited to expenses

for direct labor, materials and supplies, insurance, payroll,

ad valorem, franchise and similar taxes, and administrative and

general expenses, less (b) $690,375.

4.3 The Cost of Service Charge for each billing month

shall be the lesser of:

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