Part X Requirements Section 46 Tolls and Tariffs 46. The application shall include a concise description of the applicant's pipeline system and operations, including a system map. RESPONSE: The present TQM Pipeline system begins at Saint-Lazare near Montréal and extends to Saint-Nicolas, located on the South Shore of Québec City, and from Terrebonne (formerly Lachenaie), located North of Montréal, to East Hereford on the New Hampshire border, with laterals to Boisbriand, Saint-Jérôme, Joliette, Louiseville, Trois-Rivières and Québec City. The main line from Saint-Lazare to the Boisbriand junction (39 km) is constructed with a 762 mm (30 inches) diameter pipe while the main line from the Boisbriand junction to the Québec City junction (257.2 km) is built with a 610 mm (24 inches) diameter pipe. The extension of TQM Pipeline’s system to the Québec City South Shore measuring 13.5 km in length with a 406.4 mm diameter pipe (16 inches), with a crossing of the St. Lawrence River by tunnel, was completed in May 1996. The Terrebonne - East Hereford extension measuring 217 km in length with a 610 mm diameter pipe (24 inches) was put in service in December 1998, for the section from Terrebonne to Waterloo, and in March 1999, for the section from Waterloo to East Hereford. One 7.0 MW electric motor driven compressor unit was installed at Terrebonne and one 3.2 MW electric motor driven compressor was installed at East Hereford. At December 31, 2001 there are 19 meter stations and 9 sales taps in service. In 2002, a new receipt point will be built at Sainte-Geneviève-de-Berthier for the reception of refined biogas. The TQM Pipeline System is illustrated on the map attached hereto. Gazoduc Lac Saint-Jean Jonquière TQM Roberval Alma Chicoutimi Chambord Desbiens La Baie 1 888 810-8800 Légende / legend Réseau de Gazoduc TQM TQM Pipeline system Québec n Poste de mesurage de Gazoduc TQM La Tuque n TQM Pipeline meter station Saint-Augustin-de-Desmaures Lévis-Lauzon Saint-Romuald s Point de livraison de Gazoduc TQM Charny TQM Pipeline delivery point s s Pénitencier de Donnacona s s n s Point de réception de Gazoduc TQM TQM Pipeline receipt point Donnacona s Saint-Nicolas Station de compression de Gazoduc TQM Saint-Lambert TQM Pipeline Compressor Station Portneuf n Saint-Flavien Scott Réseau de TransCanada PipeLines Deschambault n Sainte-Marie TransCanada PipeLines system Saint-Joseph- er iv Vallée-Jonction de-Beauce R Réseau de Gaz Métropolitain ce Beauceville Gaz Métropolitain system n re w Ville/City Sainte-Anne- La t. Saint-Georges de-la-Pérade S Saint-Georges s t / Grand-Mère en Saint-Narcisse Province Saint-Laur n e de / of Saint-Maurice uv Québec le F Trois-Rivières-Ouest n Bécancour Pointe-du-Lac s n s Yamachiche Mont-Tremblant s Saint-Jovite Louiseville Sainte-Geneviève s s n Saint-Agathe-des-Monts -de-Berthier Lac Courval n Saint-Pierre Lanoraie s Mont-Rolland n Berthierville Drummondville Terrebonne2 Joliette s Saint-Jérôme s n Terrebonne Saint-Antoine- n n Mascouche de-Lavaltrie Saint-Janvier s Oka s Mirabel n Terrebonne n L'Assomption Saint-Hyacinthe Acton-Vale Repentigny Asbestos MAINE n Laval Windsor Boisbriand Waterloo s Granby Marbleton s Montréal Waterloo East-Angus Saint-Lazare n Sherbrooke Farnham Brossard Coaticook Saint-Mathieu Bromont Magog n Cowansville Sabrevois n East Hereford NEW NEW YORK VERMONT HAMPSHIRE Juillet / July 2002 Part X Requirements Section 47 Page 1 of 2 Tolls and Tariffs 47. The application shall contain a summary or copy of all agreements, not previously filed with the Board and of any substantive changes in such agreements previously filed with the Board that have been entered into by the applicant for the test year pertaining to transportation by the applicant in and outside Canada, including any throughput, deficiency, storage, exchange, delivery pressure, processing or shipper-owner agreements, if applicable. RESPONSE: Customer and Service Description TransCanada PipeLines To transport gas from Saint-Lazare to - Service Agreement dated various points on the system, pursuant to January 25, 1982. Toll Schedules T-1 and OT-1. Gaz Métropolitain To store and transport gas between Saint- - Transportation and Maurice and points downstream of Saint- Storage Service Agreement Maurice on the system, pursuant to Toll dated March 17, 1987. Schedule TS-SCGM. Gaz Métropolitain To transport storage gas from Pointe-du- - Storage Gas Transportation Lac to Trois-Rivières and, for any excess Service Agreement dated volumes, to points downstream of Trois- February 13, 1990. Rivières, and to transport gas received at Saint-Nicolas to points upstream of Saint- Nicolas pursuant to Toll Schedule SGT-SCGM. Part X Requirements Section 47 Page 2 of 2 Customer and Service Description EBI Bio-Environnement Inc. To transport refined biogas from Sainte- - Biogas Transportation Geneviève-de-Berthier to delivery points of Service Agreement dated Gaz Métropolitain served by TQM Pipeline June 28, 2002. pursuant to Toll Schedule BGT. The above agreements and all amendments have been filed with the Board. Part X Requirements Section 48 Page 1 of 4 Tolls and Tariffs 48. The application shall include the requested tariff revisions together with comparative schedules showing proposed changes to existing tolls and tariffs, and copies of existing tariffs where deemed appropriate. RESPONSE: The following tariff revisions are proposed: a) Toll Schedule T-1 shown on sheet 203 is decreased from $7,716,167 per month to $7,384,833 per month effective January 1, 2002. Such revision appears on page 2 hereof. b) Toll Schedule SGT-SCGM tolls shown on sheet 5 of 13 are modified from $1.68/103m3 to $1.52/103m3 for deliveries to Trois-Rivières, from $8.14/103m3 to $7.28/103m3 for deliveries to points located downstream of Trois-Rivières and from $2.72/103m3 to $2.47/103m3 for deliveries to points located upstream of Saint-Nicolas. Such revisions appear on page 3 hereof. c) The Storage Fee in effect under Toll Schedule TS-SCGM is unchanged at $3,875 per month pursuant to an amendment dated October 30, 1995 to the Transportation and Storage Service with Gaz Métropolitain. d) The proposed toll under Toll Schedule BGT is $0.49/103m3 for deliveries of refined biogas to points serving Gaz Métropolitain’s markets. This toll appears on page 4 hereof. Part X Requirements Section 48 Page 2 of 4 Sheet 203 TOLL SCHEDULE T-1 FIRM SERVICE 6. TOLLS Shippers’s Monthly Charge for transportation service hereunder for each billing Month beginning with Shipper’s First Billing Month shall be Shipper’s Allocable Share of $7,384,833. The said monthly charge is payable notwithstanding any failure by Shipper during such month, for any reason whatsoever including force majeure, to deliver or to cause to be delivered any portion of the gas to be delivered to Company at the Receipt points. EFFECTIVE DATE : 1 JANUARY 2002 Part X Requirements Section 48 Page 3 of 4 Page 5 of 13 TRANS QUÉBEC & MARITIMES PIPELINE INC. SGT-SCGM TOLL SCHEDULE STORAGE GAS TRANSPORTATION 2.5 The daily volume of gas shall be taken at rates of flow as nearly constant as possible. Departures from scheduled daily deliveries due to the inability of TQM Pipeline or Gaz Métropolitain to maintain precise control shall be kept to the minimum permitted by operating conditions. 2.6 Determination of daily deliveries to delivery points is provided in Section XIII of the General Terms and Conditions. 3. TOLL 3.1 The applicable toll for service hereunder is as follows : Transportation Charge Commodity Toll $/103m3 _______________________________________________________ Delivery Points Downstream Delivery Points Trois-Rivières of Trois-Rivières Upstream of St-Nicolas 1.52 7.28 2.47 EFFECTIVE DATE : 1 JANUARY 2002 Part X Requirements Section 48 Page 4 of 4 Page 5 of 10 TRANS QUÉBEC & MARITIMES PIPELINE INC. BGT TOLL SCHEDULE BIOGAS TRANSPORTATION 3. TOLL 3.1 The applicable toll for service hereunder is as follows : Transportation Charge Commodity Toll $/103m3 _______________________________________________________ 0.49 3.2 The monthly bill for deliveries for service hereunder shall be equal to the transportation charge for the billing months, calculated by multiplying the commodity toll set forth in Article 3.1 by the gas volume effectively received from EBI and transported by TQM Pipeline as provided hereunder. The commodity toll is calculated on the basis of the total revenue requirement of TQM Pipeline, as authorized by the National Energy Board or pursuant to the methodology applicable, by dividing this revenue requirement by the volume-distance of all gas to be delivered EFFECTIVE DATE : 1 JANUARY 2002 Part X Requirements Section 49 Page 1 of 3 Tolls and Tariffs 49. The application shall contain details of the applicant's proposed toll design with explanations of any changes in the toll design from that previously approved by the Board including (a) a brief description of the classes or types of service offered; (b) any toll zones or areas, illustrated by map; (c) an allocation of the applicant's test year cost of service or portions thereof to zones or areas, customers and classes or types of service, parent or subsidiary companies, where applicable, and the details and bases for such allocations; (d) details of any cost allocation units employed in deriving the proposed tolls for the test year; (e) an analysis of the applicant's projected cost of service for the test year including an allocation of each cost component to major pipeline functions and a classification of the functionalized cost components between fixed and variable costs and the basis for such cost classification; and (f) for oil pipelines, a description of the derivation of proposed tolls for the test year, including supporting information and calculations, to illustrate the determination of toll differentials for each product type or for any charge for any special service provided by the applicant.