November 7, 2006

To:  All TransGas Customers

TransGas Transportation and Storage
Rate Adjustment – January 1, 2007

TransGas Limited (TransGas) wishes to announce changes to its rates for transportation and storage services that are effective January 01, 2007. TransGas will be increasing these rates by an average of 2.0 percent. The rate adjustment is caused primarily by a reduction in transportation flows on the TransGas transmission system. The lower flows are primarily due to normal gas field declines and natural gas producers not fully replacing these production declines.

On June 1, 2006, TransGas temporarily reduced its transportation and storage service rates by 3.0 percent for the remainder of 2006. This temporary reduction will terminate on December 31, 2006 and TransGas’ service rates will return to their previous levels. That temporary reduction was due to a combination of lower 2006 costs and additional 2006 revenues which were previously not anticipated.

The specific transportation and storage rates are attached to this letter in Appendix 1. Both the existing and the new rates are shown on this table.

If you have any questions with respect to how the rate adjustment will affect you, please contact your Key Account Manager, Chris Uhren at (306) 777-9501 or Wendy Uytterhagen at (306) 777-9687. If you have more general questions regarding the changes, please contact our Policies, Rates and Regulations Department: Gary Johannsson, Manager, at (306) 777-9560 or Vern Gorr, Director, at (306) 777-9556.

 Yours truly,

TRANSGAS LIMITED

Daryl Posehn
Senior Vice President,
TransGas Limited