Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

Effective Date: 07/01/2004, Docket: RP04-361-000, Status: Effective

Original Sheet No. 305 Original Sheet No. 305 : Effective

RATE SCHEDULE T-1

Transportation Service - New Jersey and New York

4. NOMINATIONS AND SCHEDULING OF RECEIPTS AND DELIVERIES (continued)

4.2 Delivery of Gas. Based upon the daily quantity scheduled, Algonquin shall make

daily delivery of Customer's scheduled quantity taking into account the Fuel

Reimbursement Quantity. It is the intention of Algonquin that daily deliveries of

gas at the Point(s) of Delivery by Algonquin hereunder shall be as nearly equal as

possible to daily receipts of gas at the Point(s) of Receipt by Algonquin for

transportation hereunder, less the applicable Fuel Reimbursement Quantity. Any

excess or deficiency in such receipts, less the applicable Fuel Reimbursement

Quantity, and deliveries shall be resolved in accordance with the General Terms

and Conditions of this tariff. Nothing in this rate schedule shall limit

Algonquin's right to take actions pursuant to Section 26 of the General Terms and

Conditions of this tariff.

4.3 Commingling of Gas. From the time the natural gas is received by Algonquin at the

Point(s) of Receipt, Algonquin shall have the unqualified right to commingle such

natural gas with other gas in Algonquin's system.

5. OTHER OPERATING CONDITIONS

Algonquin's obligation to provide service under this rate schedule is subject to the

following conditions being satisfied:

5.1 Customer shall make all necessary arrangements with other parties at or upstream

of the Point(s) of Receipt where Customer tenders gas to Algonquin for

transportation, and at or downstream of the Point(s) of Delivery where Algonquin

delivers gas for Customer's account, and such arrangements must be compatible with

Algonquin's system operations.