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Original Sheet No. 317 Original Sheet No. 317 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(b) Firm Storage Service: Transporter conducted a

non-binding Open Season for requests for service

under Rate Schedule FSS from March 3, to March

16, 1993. Consistent with the terms of that

Open Season, Transporter will assign available

firm storage capacity first to converting firm

bundled sales customers. In the event that

sufficient capacity does not exist to fulfill

all other requests for service, Transporter will

assign the remaining available capacity to the

request providing the greatest anticipated net

present value, utilizing the interest rate

prescribed in Section 154.67(c) of the

Commission's regulations as a discount factor.

Priority for requests having the same net

present value will be determined by a lottery.

(c) Converting Firm Bundled Sales Customers: A

converting sales customer must elect the type

and mix of restructured services it deems

necessary to duplicate its level of sales

service at the time this Tariff becomes

effective. The aggregate Contract Delivery

Demand and/or Contract Demand applicable to such

transportation service(s) shall be the same as

the capacity previously reserved to provide the

bundled sales service in effect the Day before

the effective date of this Tariff. Any such

capacity not requested and assigned under Rate

Schedule NNTS pursuant to the Open Season

referenced in Section 24.1 above, will be

converted to Rate Schedule FT, accordingly.

(d) Existing Firm Transportation Service:

Transporter received no notification pursuant to

Section 284.14(e) of the Commission's

regulations from any Shippers currently

receiving service under Transporter's Rate

Schedule FT requesting reduction or termination

of such Shippers' capacity entitlement.

Accordingly, as of the effective date of

Transporter's restructured services, existing

Shippers under Rate Schedule FT will continue to

utilize capacity previously committed to such