Dominion Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 09/01/2004, Docket: RP04-433-000, Status: Effective

First Revised Sheet No. 1108 First Revised Sheet No. 1108 : Effective

Superseding: Original Sheet No. 1108


Take-or-Pay Recovery



2. Method of Payment. Pipeline shall include on

each Customer's monthly bill rendered pursuant

to Section 6 of the General Terms and

Conditions of this Tariff for quantities

transported and/or injected into storage a

usage rate which includes the Take-or-Pay

Usage Surcharge as set forth from time to time

on the Rate Sheets of this Tariff. Payment

shall be made in accordance with Section 6 of

the General Terms and Conditions, including

additional interest upon any required payment

that is received by Pipeline after the due

date of such payment.


3. Take-or-Pay Costs in Litigation or Dispute.

Take-or-pay costs shall be eligible for

recovery through the methodologies described

in Section 12.2. if incurred by Pipeline with

respect to terms of gas purchase contracts

which were the subject of litigation on March

31, 1989, or if deemed by the Commission or

the courts to be appropriate for recovery

under Order No. 500 and its progeny.


12.3 Settlement Applicability. Pursuant to the RP88-217

Settlement, in subsequent monthly billings,

Pipeline shall credit each Customers' invoice for

its allocated portion of 25 percent of Pipeline's

total upstream pipeline supplier take-or-pay costs

to be billed for that month until Pipeline has been

billed a gross amount of $172.5 million, at which

time Pipeline shall cease crediting Customers'

invoices. If Pipeline does not pay $27.5 million

in take-or-pay costs to non-affiliated producer

suppliers, Pipeline shall refund to Customers 25%

of the difference between $27.5 million and actual

take-or-pay amounts paid in accordance with the

allocation percentages set forth on Sheet No. 39.

If the provisions of this Section 12 conflict with

the terms of the RP88-217 Settlement, the RP88-217

Settlement terms shall apply.