TF03     100A0000005P128Original Sheet No. 100A
TF04               
TF05Edward C. McMurtrie, Vice President/General Manager
TF06112904110304RP04-51-000     120903
TF0710961139
                       GENERAL TERMS AND CONDITIONS
                                (Continued)


13. SEGMENTATION AND BACKHAUL TRANSPORTATION (Continued)

    13.2  Segmentation Without Capacity Release: (Continued)

          (b)  A Shipper that wishes to segment its capacity into separate
               parts for its own use is subject to the same procedures as 
               apply to the temporary capacity release of segmented capacity
               under Sections 14 and 15 of the General Terms and Conditions
               hereof, except that the Shipper’s release of capacity to itself
               will not be biddable. Such transactions will be treated as
               temporary capacity releases with the Shipper acting as both 
               the Releasing Shipper and the Replacement Shipper. New ser-
               vice agreements will be executed with the Shipper for all new
               segments. Each Transportation Service Agreement created as a
               result of segmentation will be effective for a specified 
               period of time. Subject to the provisions of Section 13.2(a),
               each such agreement will identify (1) a Receipt Point and a 
               Delivery Point, with specified maximum daily quantities that 
               may not exceed Shipper’s applicable Reserved Capacity for the
               segment, and (2) whether, and to what extent, the capacity 
               rights at each point are primary or secondary firm in nature.
               Shipper’s service at each Receipt or Delivery Point will be 
               primary firm only if (1) that point is designated as a primary
               point in the new segment transportation contract, and (2) only 
               to the extent capacity is available at the point on a primary 
               basis. To the extent primary firm point capacity is not
               available, Shipper may obtain secondary firm point rights,
               which are subject to the scheduling priority provisions set
               forth in Section 4 of the General Terms and Conditions of
               this tariff. Shipper will have the right to use any available
               alternate Receipt and Delivery Points on a secondary firm
               basis, provided that Shipper’s total nominations for any
               segment cannot exceed Shipper’s applicable Reserved Capacity
               under its agreement.