Tennessee Gas Pipeline Company


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Effective Date: 10/01/1998, Docket: RP98-378-000, Status: Effective

Third Revised Sheet No. 166 Third Revised Sheet No. 166 : Effective

Superseding: Sub Second Revised Sheet No. 166









5.1 Applicable Rates: The applicable rates for service hereunder in each zone

are set forth in the Summary of Rates and Charges in Transporter's

effective FERC Gas Tariff and are incorporated herein; provided, however,

that upon notice to Shipper, Transporter has the right at any time and

from time to time to adjust the rates applicable to service under this

Rate Schedule to any level not less than the minimum nor more than the

maximum rates established for this Rate Schedule and set forth in the

Summary of Rates and Charges in Transporter's FERC Gas Tariff. Unless

Transporter and Shipper agree upon a rate for service provided hereunder,

the rate applicable for service hereunder shall be the applicable Maximum

Rate(s) as set forth in the Summary of Rates and Charges in Transporter's

effective FERC Gas Tariff. In the event a rate less than the applicable

Maximum Rate(s) and not less than the applicable Minimum Rate(s) is agreed

upon, such rate (a) shall apply solely to service at receipt and/or

delivery points agreed upon by Transporter, and (b) shall be applicable

for the period agreed upon by Transporter. By mutual agreement between

Transporter and Shipper, discounts may be limited consistent with the

provisions of Section 6.1 of the pro forma service agreement applicable to

this Rate Schedule FT-GS. In the event Transporter and Shipper agree to a

fixed rate for service provided hereunder and which is to be charged for

the duration of the Service Agreement, said rate will be set forth in the

applicable Service Agreement. Transporter shall file with the Commission

the required reports of any adjustment below the maximum rates for service

under this Rate Schedule.


5.2 Facilities Charge: In addition to the other charges pursuant to Section

5.1 of this Rate Schedule, Transporter may charge Shipper an amount to

reflect the cost of Tap Facilities or Tap and Connecting Facilities as

provided in Article XVII of the General Terms and Conditions of

Transporter's FERC Gas Tariff; provided, however, that if new facilities

are necessary solely to enable Transporter to maintain existing service

levels, then no Facilities Charge will be assessed. Any applicable

Facilities Charge may be stated in the Transportation Service Agreement.