RATE SCHEDULE FTS-1
                           Firm Transportation Service
                                   (Continued)
   
A firm Shipper may segment its capacity by transporting in a forward haul up
to its full Transportation Contract Demand and a backward haul up to its full
Transportation Contract Demand to the same point at the same time.
   
  3. MIGC shall not be obligated to allocate firm capacity in the specific
manner requested by Shipper unless adequate firm capacity is available without
the construction of additional facilities by MIGC.  MIGC shall promptly advise
a new customer requesting firm transportation service under this Rate Schedule
if adequate firm capacity does not exist on any portion of MIGC's system for
the service requested and Shipper and MIGC shall cooperate in devising a
transportation service which utilizes the available firm capacity which does
exist on MIGC's system.
   
3. RATE
   
  The charge  for natural  gas transportation  service  rendered  during  each
monthly billing period shall be the sum of the applicable amounts specified in
Sections 3.1, 3.2, and 3.3 below:
   
  1. Reservation Charge  - An  amount determined  on a  monthly basis  as the
product of:
   
     (a)  Shipper's Transportation  Contract Demand  specified on Exhibit A to
the executed Transportation Service Agreement; and
   
     (b)  maximum Reservation  Charge rate  per MMBtu  set forth  from time to
time on the currently effective Sheet No. 4 of this Second Revised Volume
No. 1 Tariff, or superseding tariff, which sheet is incorporated herein by
reference.
   
  In the event MIGC is on any day rendered incapable of performing service
requested by Shipper under  this Rate  Schedule FTS-1,  Shipper will not be
obligated to  pay the allocable portion of the monthly Reservation Charge for
the amount  of  service  (up  to  Shipper's  Transportation  Contract Demand)
requested but not received.
   
  2. Commodity Charge - An amount determined as the product of:
   
     (a) the quantity of natural gas in MMBtu delivered to MIGC by Shipper or
for Shipper's account during the month; and