NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1995, Docket: RP94-343-000, Status: Effective

Original Sheet No. 314 Original Sheet No. 314 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

basis, at Transporter's system cost of gas;

and

(iii) Transporter shall determine the amount of

such working gas balance required for

Transporter's Order No. 636 system

operational use at the time of

implementation of its Order No. 636

services. Such amount may be up to, but

shall not exceed, 4 Bcf.

(b) The Rate Schedule FSS and NNTS Shippers shall be

relieved of compliance with any otherwise

applicable conditions and/or limitations under

the applicable Rate Schedules to the extent

required to permit such transfers.

(c) Storage balance costs shall be billed to each

Rate Schedule FSS and NNTS Shipper within thirty

(30) Days of Transporter's implementation of

services pursuant to Order No. 636, and such

amounts shall be due within ten (10) Days of the

date that such bills are rendered.

(d) Any amounts not paid by Shipper when due shall

accrue interest calculated in accordance with

Section 154.67(c) of the Commission's

Regulations from the date due until such amounts

are paid.

23.5 Mitigation. The Commission has required Transporter

to implement Straight Fixed Variable ("SFV") rate

design. Transporter will reduce or mitigate any

overall increase of 10% or greater in the aggregate

share of Transporter's revenue requirement allocated

to be recovered from all services provided to a

Shipper which it would otherwise experience due to

the change in rate design and the implementation of

final rates in the Docket No. RS92-3 proceeding. To

mitigate or reduce the increase overall to eight

percent (8%), Transporter will permit the designation

of seasonal Contract Demand levels for each affected

Shipper in such Shipper's Service Agreement.