Discovery Gas Transmission LLC

Original Volume No. 1

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Effective Date: 11/10/1997, Docket: CP96-712-002, Status: Effective

Original Sheet No. 163 Original Sheet No. 163 : Effective




Replacement Shipper shall pay a reservation charge and

any usage charge for use of the released capacity. A

Replacement Shipper will be billed by Transporter and

shall make payments to Transporter in accordance with the

terms of the Service Agreement for Capacity Release

Transactions and the applicable Confirmation Letter. For

capacity releases other than a permanent release,

Transporter shall bill the Releasing Shipper its

reservation charge and reflect a credit of the

reservation charge billed to the Replacement Shipper.

The Releasing Shipper will receive all revenue generated

by a temporary Replacement Shipper's payment of

reservation charges for the released capacity. In the

event the Releasing Shipper receives Transportation

service at a discounted rate that is less than the rate

paid by the Replacement Shipper, the Releasing Shipper,

at its option, will be entitled to receive an additional

credit or a refund of the difference. However, the

Releasing Shipper shall remain liable for the reservation

charge and Transporter will bill the Releasing Shipper

for any reservation charges not paid by the Replacement

Shipper and any associated interest on late payments

during the next billing cycle. The Replacement Shipper

shall be obligated to pay Transporter any usage rate and

all associated volumetric surcharges applicable to the

quantities Transporter transports under the Replacement

Shipper's FT-1 Service Agreement, and any penalties and

cashout charges assessed in connection with the

Replacement Shipper's use of the Released Capacity.

Transporter will retain the usage charge, associated

volumetric surcharges, and any penalty and cashout