TRANSPORTATION GENERAL TERMS AND CONDITIONS
                                 (Continued)
   
        (5)  The new interconnect must not result in any minimum pressure
receipt or delivery requirement by MIGC, unless MIGC agrees otherwise, such
agreement shall not be unreasonably withheld, and MIGC shall not be
responsible for any downstream parties' facilities, the operation or
maintenance of such facilities, or the delivery of any unauthorized volumes to
the facilities; and
   
        (6)  The service supporting the interconnect as well as the construc-
tion of the new facilities must conform with the provisions of MIGC's FERC Gas
Tariff, Second Revised Volume No. 1 as well as applicable regulatory require-
ments.
   
  25.  FUEL AND LOSS REIMBURSEMENT
   
        Shippers shall reimburse MIGC for Fuel and Lost and Unaccounted-For
Gas (fuel and loss) in kind.  Fuel retention and loss percentage factors (FL&U
factors) are set forth in the effective Sheet No. 6 of this FERC Gas Tariff.
   
        MIGC shall file revised FL&U each year, based on prior year actuals.
Any difference between actual fuel and loss in the prior year and the quantity
retained in kind hereunder for the prior year shall be deferred and be included
in the calculation of revised FL&U factors for the following year.  Such annual
filing shall be made no later than July 1st to be effective August 1st.
   
        Prior year actual FL&U factors shall be calculated using the
immediately prior actual 12 month period ending May 31 as follows:
   
        (a)  Fuel from mainline compressors (i.e., having inlet pressures at
or exceeding 350 psig) plus total system lost and unaccounted for volumes
shall be divided by total receipt volumes to determine the system wide FL&U
factor.
   
        (b)  Fuel from all receipt point compressors (i.e., having inlet
pressures less than 350 psig) shall be divided by total receipt volumes from
all receipt point compressors to determine the receipt point FL&U factor. The 
receipt point FL&U factor shall be added to the mainline FL&U factor to
determine the total receipt point compression FL&U factor.