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                          THIRD SUPPLEMENTAL INDENTURE

                                      FROM

                        MICHIGAN CONSOLIDATED GAS COMPANY

                                       TO

                                 CITIBANK, N.A.

                                     TRUSTEE

                                   -----------

                           Dated as of August 15, 2001

                             SUPPLEMENT TO INDENTURE

                            Dated as of June 1, 1998

                                  Providing for

                          6 1/8% Senior Notes due 2008

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         This THIRD SUPPLEMENTAL INDENTURE is made as of the 15th day of August,
2001, by and between MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly
organized and existing under the laws of the State of Michigan (the "Company"),
and CITIBANK, N.A., a national banking association incorporated and existing
under and by virtue of the laws of the United States of America, as trustee (the
"Trustee").

                            RECITALS OF THE COMPANY:

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture, dated as of June 1, 1998 (the "Original Indenture"), as
amended, supplemented and modified (as so amended, supplemented and modified,
the "Indenture"), providing for the issuance by the Company from time to time of
its senior debt securities (the "Securities"); and

         WHEREAS, the Company desires to provide for the issuance of a series of
its Securities pursuant to the Indenture; and

         WHEREAS, the Company, in the exercise of the power and authority
conferred upon and reserved to it under the provisions of the Original
Indenture, including Section 10.1 thereof, and pursuant to appropriate
resolutions of the Board of Directors, has duly determined to make, execute and
deliver to the Trustee this Supplemental Indenture to the Original Indenture as
permitted by Section 2.1 and Section 3.1 of the Original Indenture in order to
establish the form or terms of, and to provide for the creation and issue of, a
series of its Securities under the Original Indenture, which shall be known as
the "6 1/8% Senior Notes due 2008" (the "Senior Notes"); and

         WHEREAS, all things necessary to make such Securities, when executed by
the Company and authenticated and delivered by the Trustee or any Authenticating
Agent and issued upon the terms and subject to the conditions hereinafter and in
the Original Indenture set forth against payment therefor, the valid, binding
and legal obligations of the Company and to make this Supplemental Indenture a
valid, binding and legal agreement of the Company, have been done;

         NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE that, in order to establish
the terms of a series of Securities, and for and in consideration of the
premises and of the covenants contained in the Original Indenture and in this
Supplemental Indenture and for other good and valuable consideration the receipt
and sufficiency of which are hereby acknowledged, it is mutually covenanted and
agreed as follows:

                                   Article I
                       RELATION TO INDENTURE; DEFINITIONS

         Section 1.01.

         This Supplemental Indenture constitutes an integral part of the
Indenture.

         Section 1.02.

         For all purposes of this Supplemental Indenture:

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         (a) Capitalized terms used but not otherwise defined herein shall have
the respective meanings assigned to such terms in the Indenture;

         (b) All references herein to Articles and Sections, unless otherwise
specified, refer to the corresponding Articles and Sections of this Supplemental
Indenture; and

         (c) The terms "hereof," "herein," "hereby," "hereto," "hereunder," and
"herewith" refer to this Supplemental Indenture.

                                   Article II
                                 THE SECURITIES

         This Supplemental Indenture hereby establishes a series of Securities,
known as and entitled "6 1/8% Senior Notes due 2008." The aggregate principal
amount of the Securities shall be limited initially to Two Hundred Million
Dollars ($200,000,000) (except for Senior Notes authenticated and delivered upon
transfer of, or in exchange for, or in lieu of, other Senior Notes); provided
that the Company may, without the consent of the Holders, "reopen" the series of
Senior Notes so as to increase the aggregate principal amount of the Senior
Notes in compliance with the procedures set forth in the Original Indenture,
including Section 3.1 and Section 3.3 thereof, and subject to limitations, if
any, on the Company's ability to issue Collateral Bonds securing the additional
Senior Notes, so long as any such additional Senior Notes have the same tenor
and terms as the Senior Notes then Outstanding.

         The Senior Notes are not subject to repayment at the option of Holders
thereof and are not subject to any sinking fund. As provided in the form of
Senior Notes attached hereto as Appendix I, the Senior Notes are subject to
optional redemption, as a whole or in part, by the Company prior to the Stated
Maturity of the principal thereof on the terms set forth therein. Except as
modified in the form of the Senior Notes, redemptions shall be effected in
accordance with Article Twelve of the Original Indenture.

         The Senior Notes shall have such other terms and provisions as are set
forth in the form of the Senior Notes attached hereto as Appendix I (which is
incorporated by reference in and made a part of this Supplemental Indenture as
if set forth in full at this place).

         The Senior Notes shall be issuable only in fully registered form and,
as permitted by Section 3.1 and Section 3.2 of the Original Indenture, in
denominations of $1,000 and integral multiples thereof. The Senior Notes will
initially be issued in global form (the "Global Notes") under a book-entry
system, registered in the name of The Depository Trust Company, as depository
("DTC"), or its nominee, which is hereby designated as "U.S. Depositary" under
the Indenture.

         Further to Section 3.5 of the Original Indenture, any Global Note shall
be exchangeable for Senior Notes registered in the name of, and a transfer of a
Global Note may be registered to, any Person other than the U.S. Depositary for
such Senior Note or its nominee only if (i) such U.S. Depositary notifies the
Company that it is unwilling or unable to continue as U.S. Depositary for such
Global Note or if at any time such U.S. Depositary ceases to be a clearing
agency registered under the Exchange Act, and, in either such case, the Company
does not appoint a successor U.S. Depositary within 90 days thereafter, (ii) the
Company executes and

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delivers to the Trustee a Company Order that such Global Note shall be so
exchangeable and the transfer thereof so registrable or (iii) there shall have
occurred and be continuing an Event of Default or an event which, with the
giving of notice or lapse of time, or both, would constitute an Event of Default
with respect to the Senior Notes. Upon the occurrence in respect of any Global
Note of any or more of the conditions specified in clause (i), (ii) or (iii) of
the preceding sentence, such Global Note may be exchanged for Senior Notes
registered in the name of, and the transfer of such Global Note may be
registered to, such Persons (including Persons other than the U.S. Depositary
and its nominees) as such U.S. Depositary, in the case of an exchange, and the
Company, in the case of a transfer, shall direct.

                                  Article III
                          TRANSFER OF COLLATERAL BONDS

          The Company hereby issues, delivers and transfers to the Trustee in
connection with the issuance of the Senior Notes, Two Hundred Million Dollars
($200,000,000) aggregate principal amount of a related issue of Collateral Bonds
of the Company designated "First Mortgage Bonds, 6 1/8% Collateral Bonds due
2008" (the "Related Issue of Collateral Bonds" and, together with all other
First Mortgage Bonds issued under the First Mortgage Indenture as security for
Securities issued under the Indenture, "Collateral Bonds"), which has been fully
registered in the name of the Trustee in such capacity, to be held in trust for
the benefit of the Holders from time to time of the Senior Notes as security for
any and all obligations of the Company in respect of the Senior Notes of this
series under the Indenture, this Supplemental Indenture and the Senior Notes,
including but not limited to (1) the full and prompt payment of the interest on,
principal of, and premium, if any, on the Senior Notes when and as the same
shall become due and payable in accordance with the terms and provisions of the
Indenture and this Supplemental Indenture and the Senior Notes, either at the
Stated Maturity, upon acceleration of the maturity or upon redemption of the
Senior Notes, and (2) the full and prompt payment of any interest on the Senior
Notes when and as the same shall become due and payable in accordance with the
terms and provisions of the Indenture and this Supplemental Indenture and the
Senior Notes. The Trustee shall enforce all of its rights under the First
Mortgage Indenture as a holder of the Related Issue of Collateral Bonds
transferred to it as provided in this Article III for the benefit of the Holders
of the Senior Notes and the proceeds of the enforcement of such rights shall be
applied by the Trustee to satisfy the Company's obligations under the Indenture,
this Supplemental Indenture and the Senior Notes.

         The Company shall make payments of the principal of, and premium or
interest on, the Related Issue of Collateral Bonds to the Trustee, which
payments shall be applied by the Trustee to satisfaction of all obligations then
due on the Senior Notes.

         The Related Issue of Collateral Bonds shall not be sold or transferred
by the Trustee until the earlier of the Release Date or the prior retirement of
the Senior Notes through redemption, repurchase or otherwise. The "Release Date"
shall be the date that all First Mortgage Bonds of the Company issued and
outstanding under the First Mortgage Indenture, other than the Collateral Bonds,
have been retired (at, before or after the maturity thereof) through payment,
redemption or otherwise, provided that no default or Event of Default has
occurred and, at such time, is continuing under the Indenture.

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                                   Article IV
                                    COVENANTS

         Section 4.01.

         The covenant set forth in Section 11.10 of the Indenture shall apply to
the Senior Notes only from and after the Release Date (unless Substituted
Collateral Bonds are issued to secure the Senior Notes from and after the
Release Date); provided, that, in any case, the Company may issue, assume or
guarantee Indebtedness secured by a Lien not otherwise permitted under Section
11.10 so long as it effectively secures the Senior Notes equally and ratably
with such Indebtedness.

         Section 4.02.

         The covenant set forth in Section 11.11 of the Indenture shall apply to
the Senior Notes only from and after the Release Date (unless Substituted
Collateral Bonds are issued to secure the Senior Notes from and after the
Release Date).

                                   Article V
                                  MISCELLANEOUS

         Section 5.01.

         The Trustee has accepted the amendment of the Indenture effected by
this Supplemental Indenture and agrees to execute the trust created by the
Indenture as hereby amended, but only upon the terms and conditions set forth in
the Indenture, including the terms and provisions defining and limiting the
liabilities and responsibilities of the Trustee, and without limiting the
generality of the foregoing, the Trustee shall not be responsible in any manner
whatsoever for or with respect of any of the recitals or statements contained
herein, all of which recitals or statements are made solely by the Company, or
for or with respect to (a) the validity or sufficiency of this Supplemental
Indenture or any of the terms or provisions hereof, (b) the proper authorization
hereof by the Company by corporate action or otherwise, and (c) the due
execution hereof by the Company.

         Section 5.02.

         This Supplemental Indenture and the Senior Notes shall be construed in
connection with and as a part of the Indenture and shall be governed by the laws
(other than the choice of law provisions) of the State of New York.

         Section 5.03.

         (a) If any provision of this Supplemental Indenture conflicts with
another provision of the Indenture required to be included in indentures
qualified under the Trust Indenture Act of 1939, as amended (as enacted prior to
the date of this Supplemental Indenture), by any of the provisions of Section
310 to 317, inclusive, of said act, such required provision shall control.

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         (b) In case any one or more of the provisions contained in this
Supplemental Indenture or in the Senior Notes issued hereunder should be
invalid, illegal, or unenforceable in any respect, the validity, legality and
enforceability of the remaining provisions contained herein and therein shall
not in any way be affected, impaired, prejudiced or disturbed thereby.

         Section 5.04.

         Whenever in this Supplemental Indenture either of the parties hereto is
named or referred to, such name or reference shall be deemed to include the
successors or assigns of such party, and all the covenants and agreements
contained in this Supplemental Indenture by or on behalf of the Company or by or
on behalf of the Trustee shall bind and inure to the benefit of the respective
successors and assigns of such parties, whether so expressed or not.

         Section 5.05.

         (a) This Supplemental Indenture may be simultaneously executed in
several counterparts, and all such counterparts executed and delivered, each as
an original, shall constitute but one and the same instrument.

         (b) The descriptive headings of the several Articles of this
Supplemental Indenture were formulated, used and inserted in this Supplemental
Indenture for convenience only and shall not be deemed to affect the meaning or
construction of any of the provisions hereof.

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         IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this
Supplemental Indenture to be executed by its duly authorized Officer and its
corporate seal to be hereunto affixed, and CITIBANK, N.A., as Trustee as
aforesaid, has caused this Supplemental Indenture to be executed by one of its
authorized signatories, as of August 15, 2001.

                                          MICHIGAN CONSOLIDATED GAS COMPANY

                                          By: /s/ N.A. Khouri
                                              -------------------------------
                                          Name: N.A. Khouri
                                          Title: Vice President and Treasurer

                                          CITIBANK, N.A., as Trustee

                                          By: /s/ Wafaa Orfy
                                              -------------------------------
                                          Name: Wafaa Orfy
                                          Title: Assistant Vice President

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                                                                      Appendix I

                           FORM OF 6 1/8% SENIOR NOTE

CUSIP: 594457 BQ5
No. [  ]

                                                                    $200,000,000

         THIS NOTE IS IN GLOBAL FORM WITHIN THE MEANING OF THE SENIOR INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A U.S. DEPOSITARY OR A
NOMINEE OF A U.S. DEPOSITARY. UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN
PART FOR A NOTE IN CERTIFICATED FORM, THIS NOTE MAY NOT BE TRANSFERRED EXCEPT AS
A WHOLE BY THE U.S. DEPOSITARY TO A NOMINEE OF THE U.S. DEPOSITARY OR BY A
NOMINEE OF THE U.S. DEPOSITARY TO THE U.S. DEPOSITARY OR ANOTHER NOMINEE OF THE
U.S. DEPOSITARY OR BY THE U.S. DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR
DEPOSITARY.

         Unless this certificate is presented by an authorized representative of
The Depository Trust Company, a New York corporation ("DTC"), to the Company (as
defined below) or its agent for registration of transfer, exchange or payment,
and any certificate issued is registered in the name of Cede & Co. or in such
other name as is requested by an authorized representative of DTC (and any
payment is made to Cede & Co. or to such other entity as requested by an
authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered
owner hereof, Cede & Co., has an interest herein.

                        MICHIGAN CONSOLIDATED GAS COMPANY

                               6 1/8% Senior Notes
                                    due 2008

Principal Amount: $200,000,000

Authorized Denomination: $1,000

Regular Record Date: close of business on the 15th calendar day (whether or not
a Business Day) prior to the relevant Interest Payment Date

Original Issue Date: August 22, 2001

Stated Maturity: September 1, 2008

Interest Payment Dates: March 1 and September 1 of each year, commencing March
1, 2002

Interest Rate: 6 1/8% per annum

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         MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly organized and
existing under the laws of the State of Michigan (the "Company", which term
includes any successor corporation under the Senior Indenture hereinafter
referred to), for value received, hereby promises to pay to Cede & Co. or
registered assigns, at the office or agency of the Company in The City of New
York, New York, the principal sum of TWO HUNDRED MILLION DOLLARS ($200,000,000)
on September 1, 2008 (the "Stated Maturity"), in the coin or currency of the
United States, and to pay interest thereon from the Original Issue Date shown
above, or from the most recent Interest Payment Date to which interest has been
paid or duly provided for, semi-annually in arrears on each Interest Payment
Date as specified above, commencing on March 1, 2002 and on the Stated Maturity
at the rate per annum shown above (the "Interest Rate") until the principal
hereof is paid or made available for payment and on any overdue principal and
premium and on any overdue installment of interest. The interest so payable, and
punctually paid or duly provided for, on any Interest Payment Date will, as
provided in the Senior Indenture, be paid to the Person in whose name this
Security (or one or more Predecessor Securities) is registered on the Regular
Record Date as specified above next preceding such Interest Payment Date;
provided that any interest payable at Stated Maturity or on a Redemption Date
will be paid to the Person to whom principal is payable. Except as otherwise
provided in the Senior Indenture, any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such
Regular Record Date and may either be paid to the Person in whose name this
Senior Note is registered at the close of business on a Special Record Date for
the payment of such defaulted Interest to be fixed by the Senior Trustee, notice
whereof shall be given to Holders of Securities of this series not less than 10
days prior to such Special Record Date, or be paid at any time in any other
lawful manner not inconsistent with the requirements of any securities exchange,
if any, on which the Securities of this series shall be listed, and upon such
notice as may be required by any such exchange, all as more fully provided in
the Senior Indenture.

         Payments of interest on this Senior Note will include interest accrued
to but excluding the respective Interest Payment Dates. Interest payments for
this Senior Note shall be computed and paid on the basis of a 360-day year of
twelve 30-day months. The Company shall pay interest on overdue principal and
premium, if any, and, to the extent lawful, on overdue installments of interest
at the rate per annum borne by this Senior Note. In the event that any Interest
Payment Date, Redemption Date or Maturity Date is not a Business Day, then the
required payment of principal, premium, if any, and interest will be made on the
next succeeding day that is a Business Day (and without any interest or other
payment in respect of any such delay). "Business Day" means any day other than a
day on which banking institutions in The State of New York or the State of
Michigan are authorized or obligated pursuant to law or executive order to
close.

         Payment of principal of, premium, if any, and interest on the
Securities of this series shall be made in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of
public and private debts. Payments of principal of, premium, if any, and
interest on Securities of this series represented by a Global Security shall be
made by wire transfer of immediately available funds to the Holder of such
Global Security, provided that, in the case of payments of principal and
premium, if any, such Global Security is first surrendered to the Paying Agent
(as defined in the Senior Indenture). If any of the Securities of this series
are no longer represented by a Global Security, (i) payments of principal,
premium, if any, and interest due at the Stated Maturity or earlier redemption
of such Securities shall be made at the

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office of the Paying Agent upon surrender of such Securities to the Paying
Agent, and (ii) payments of interest shall be made, at the option of the
Company, subject to such surrender where applicable, (A) by check mailed to the
address of the Person entitled thereto as such address shall appear in the
Security Register or (B) by wire transfer at such place and to such account at a
banking institution in the United States as may be designated in writing to the
Senior Trustee at least sixteen (16) days prior to the date for payment by the
Person entitled thereto.

         UNTIL THE RELEASE DATE (AS DEFINED ON THE REVERSE HEREOF), THIS SENIOR
NOTE SHALL BE SECURED BY FIRST MORTGAGE BONDS (THE "FIRST MORTGAGE BONDS")
ISSUED AND DELIVERED BY THE COMPANY TO THE SENIOR TRUSTEE (AS DEFINED ON THE
REVERSE HEREOF) UNDER THE COMPANY'S TWENTY-NINTH SUPPLEMENTAL INDENTURE DATED AS
OF JULY 15, 1989, PROVIDING FOR THE RESTATEMENT OF THE INDENTURE OF MORTGAGE AND
DEED OF TRUST DATED AS OF MARCH 1, 1994 BETWEEN THE COMPANY AND CITIBANK, N.A.
(THE "MORTGAGE TRUSTEE"), AS SUPPLEMENTED BY THE THIRTY-SIXTH SUPPLEMENTAL
INDENTURE (AS SO SUPPLEMENTED, THE "MORTGAGE INDENTURE"). ON THE RELEASE DATE,
THE SENIOR NOTES SHALL CEASE TO BE SECURED BY SUCH FIRST MORTGAGE BONDS AND, AT
THE COMPANY'S OPTION, EITHER (i) SHALL BECOME UNSECURED GENERAL OBLIGATIONS OF
THE COMPANY OR (ii) SHALL BE SECURED BY FIRST MORTGAGE BONDS UNDER A SECURED
MORTGAGE INDENTURE OTHER THAN THE MORTGAGE INDENTURE.

         Reference is made to the further provisions of this Senior Note set
forth on the reverse hereof. Such further provisions shall for all purposes have
the same effect as though fully set forth at this place.

         This Senior Note shall not be valid or become obligatory for any
purpose until the certificate of authentication hereon shall have been manually
signed by the Senior Trustee under the Senior Indenture referred to on the
reverse hereof.

         IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this
instrument to be duly executed under its corporate seal.

Dated:

                                              MICHIGAN CONSOLIDATED GAS COMPANY

                                              By:
                                                   -----------------------------
                                                   Title:

Attest:

By:
     -----------------------
     Title:

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                         CERTIFICATION OF AUTHENTICATION

Dated:

         This is one of the Securities of the series designated therein referred
to in the within-mentioned Senior Indenture.

                                               CITIBANK, N.A., as Trustee

                                              By:
                                                 -------------------------------
                                                     Authorized Signatory

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                        MICHIGAN CONSOLIDATED GAS COMPANY

                               6 1/8% Senior Notes
                                    due 2008

         1. Senior Indenture. (a) This Senior Note is one of the duly authorized
issue of Securities of the Company (hereinafter called the "Securities") of the
series hereinafter specified, all issued or to be issued under and pursuant to
an Indenture, dated as of June 1, 1998, as supplemented by the First
Supplemental Indenture, dated as of June 18, 1998, the Second Supplemental
Indenture, dated as of June 9, 1999, and the Third Supplemental Indenture, dated
as of August 15, 2001, between the Company and the Trustee (as so supplemented,
the "Senior Indenture"), duly executed and delivered by the Company to Citibank,
N.A., as Trustee (herein called the "Senior Trustee," which term includes any
successor trustee under the Senior Indenture), to which Senior Indenture
reference is hereby made for a description of the rights, limitations of rights,
obligations, duties and immunities thereunder of the Senior Trustee, the Company
and the Holders of the Securities. The Securities may be issued in one or more
series, which different series may be issued in various aggregate principal
amounts, may mature at different times, may bear interest, if any, at different
rates, may be subject to different redemption provisions (if any) and may be
subject to different sinking, purchase or analogous funds (if any) and may
otherwise vary as provided in the Senior Indenture. This Security is one of the
series designated as the "6 1/8% Senior Notes due 2008" (the "Senior Notes") of
the Company.

                  (b) The Senior Indenture contains provisions for defeasance at
any time of the entire indebtedness of the Senior Notes or certain covenants
with respect thereto upon compliance by the Company with certain conditions set
forth therein.

         2. Transfer. No service charge will be made for any transfer or
exchange of Senior Notes, but payment will be required of a sum sufficient to
cover any tax or other governmental charge that may be imposed in connection
therewith.

         The Company shall not be required (a) to issue, transfer or exchange
any Senior Notes during a period beginning at the opening of business fifteen
(15) days before the day of the mailing of a notice pursuant to Section 12.4 of
the Indenture identifying the serial numbers of the Senior Notes to be called
for redemption, and ending at the close of business on the day of the mailing,
or (b) to transfer or exchange any Senior Notes theretofore selected for
redemption in whole or in part, except the unredeemed portion of any Note
redeemed in part.

         3. Redemption at the Company's Option. The Senior Notes shall be
subject to redemption at the option of the Company, in whole at any time or in
part from time to time (any such date of optional redemption, a "Redemption
Date" for purposes of the Indenture), at an optional redemption price (which
shall be a "Redemption Price" for purposes of the Indenture) equal to the
greater of (i) 100% of the principal amount of the Senior Notes to be redeemed
and (ii) the sum of the present values of the principal amount of the Senior
Notes to be redeemed and the remaining scheduled payments of interest on the
principal amount of the Senior Notes to be redeemed (exclusive of interest
accrued to the related Redemption Date) until Stated Maturity, in each case
discounted from their respective scheduled payment dates to such Redemption Date
on

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a semiannual basis (assuming a 360-day year consisting of 30-day months) at
the Adjusted Treasury Rate (as defined below) plus 25 basis points, plus in
either case, accrued interest thereon to the date of redemption.

         "Adjusted Treasury Rate" means, with respect to any Redemption Date,
the rate per annum equal to the semiannual yield to maturity of the Comparable
Treasury Issue, calculated on the third Business Day preceding such Redemption
Date, using a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such
Redemption Date.

         "Comparable Treasury Issue" means the United States Treasury security
determined by the Reference Treasury Dealer selected by the Company as having a
maturity comparable to the remaining term of the Senior Notes that would be
utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable
maturity with the remaining term of the Senior Notes.

         "Comparable Treasury Price" means, with respect to any Redemption Date,
(i) the average of the Reference Treasury Dealer Quotations for such Redemption
Date, after excluding the highest and lowest such Reference Treasury Dealer
Quotations, or (ii) if the Senior Trustee obtains fewer than three such
Reference Treasury Dealer Quotations, the average of all such quotations, or
(iii) if only one Reference Treasury Dealer Quotation is received, such
quotation.

         "Reference Treasury Dealer" means each of: (i) Credit Suisse First
Boston Corporation, J. P. Morgan Securities Inc. and Barclays Capital Inc. (or
their respective affiliates which are Primary Treasury Dealers), and their
respective successors; provided, however, that if any of the foregoing cease to
be a primary U.S. Government securities dealer in The City of New York (a
"Primary Treasury Dealer"), the Company shall substitute therefor another
Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer(s) selected
by the Senior Trustee after consultation with the Company.

         "Reference Treasury Dealer Quotation" means, with respect to each
Reference Treasury Dealer and any Redemption Date, the average, as determined by
the Senior Trustee, of the bid and asked prices for the Comparable Treasury
Issue (expressed in each case as a percentage of its principal amount) quoted in
writing to the Senior Trustee by such Reference Treasury Dealer at 5:00 p.m.,
New York City time, on the third Business Day preceding such Redemption Date.

         Unless the Company defaults in payment of the applicable Redemption
Price, on and after the applicable Redemption Date interest will cease to accrue
on the principal amount of the Senior Notes called for redemption.

         If money sufficient to pay the applicable Redemption Price with respect
to the principal amount of and accrued interest on the principal amount of the
Senior Notes to be redeemed on the applicable Redemption Date is deposited with
the Senior Trustee or Paying Agent on or before the related Redemption Date and
certain other conditions are satisfied, then on or after such date, interest
will cease to accrue on the principal amount of the Senior Notes called for
redemption.

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         If the Senior Notes are only partially redeemed by the Company, the
Senior Trustee shall select which Senior Notes are to be redeemed in a manner it
deems fair and appropriate in accordance with the terms of the Indenture.

         In the event of redemption of the Senior Notes in part only, a new
Senior Note or Notes for the unredeemed portion will be issued in the name or
names of the Holders thereof upon the surrender thereof.

         The Senior Notes will not have a sinking fund.

         Notice of redemption shall be given as provided in Section 12.4 of the
Indenture.

         Any redemption of less than all of the Senior Notes shall, with respect
to the principal thereof, be divisible by $1,000.

         4. Security; Release Date. Prior to the Release Date (as hereinafter
defined), the Senior Notes shall be secured by First Mortgage Bonds designated
as 6 1/8% Collateral Bonds due 2008 (the "Collateral Bonds"), delivered by the
Company to the Senior Trustee for the benefit of the Holders of the Senior
Notes. Prior to the Release Date, the Company shall make payments of the
principal of, and premium, if any, and or interest on, the Collateral Bonds to
the Senior Trustee, which payments shall be applied by the Senior Trustee to
satisfaction of all obligations then due on the Senior Notes. Reference is made
to the Mortgage Indenture and the Senior Indenture for a description of the
rights of the Senior Trustee as holder of the Collateral Bonds, the property
mortgaged and pledged under the Mortgage Indenture and the rights of the Company
and of the Mortgage Trustee in respect thereof, the duties and immunities of the
Mortgage Trustee and the terms and conditions upon which the Collateral Bonds
are secured and the circumstances under which additional First Mortgage Bonds
may be issued.

         FROM AND AFTER SUCH TIME AS ALL FIRST MORTGAGE BONDS (OTHER THAN
COLLATERAL BONDS) ISSUED UNDER THE MORTGAGE INDENTURE HAVE BEEN RETIRED THROUGH
PAYMENT, REDEMPTION OR OTHERWISE AT, BEFORE OR AFTER THE MATURITY THEREOF (THE
"RELEASE DATE"), THE COLLATERAL BONDS SHALL CEASE TO SECURE THE SENIOR NOTES IN
ANY MANNER PROVIDED THAT NO DEFAULT OR EVENT OF DEFAULT HAS OCCURRED AND AT SUCH
TIME IS CONTINUING UNDER THE SENIOR INDENTURE. IN CERTAIN CIRCUMSTANCES PRIOR TO
THE RELEASE DATE AS PROVIDED IN THE SENIOR INDENTURE, THE COMPANY IS PERMITTED
TO REDUCE THE AGGREGATE PRINCIPAL AMOUNT OF A SERIES OF COLLATERAL BONDS HELD BY
THE TRUSTEE, BUT IN NO EVENT PRIOR TO THE RELEASE DATE TO AN AMOUNT LESS THAN
THE AGGREGATE OUTSTANDING PRINCIPAL AMOUNT OF THE SERIES OF SENIOR NOTES
INITIALLY ISSUED CONTEMPORANEOUSLY WITH SUCH COLLATERAL BONDS.

         5. Effect of Event of Default. In case an Event of Default with respect
to the Senior Notes shall occur and be continuing, the unpaid principal of the
Senior Notes may be declared due and payable, in the manner, with the effect and
subject to the conditions provided in the Senior Indenture.

                                      I-7

<PAGE>

         6. Amendments and Waivers. The Senior Indenture may be modified by the
Company and the Senior Trustee without consent of any Holder with respect to
certain matters as described in the Indenture. In addition, the Senior Indenture
permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of
the Holders of the Securities of each series to be affected under the Senior
Indenture at any time by the Company and the Senior Trustee with the consent of
the Holders of a majority in principal amount of the Securities at the time
Outstanding of each series to be affected. The Senior Indenture also contains
provisions permitting the Holders of a majority in principal amount of the
Securities of each series at the time Outstanding, on behalf of the Holders of
all Securities of such series, to waive compliance by the Company with certain
provisions of the Senior Indenture and certain past defaults under the Senior
Indenture and their consequences. Any such consent or waiver by the Holder of
this Senior Note shall bind such Holder and all future Holders of this Senior
Note and of any note issued upon the registration of transfer hereof or in
exchange hereof or in lieu hereof, whether or not notation of such consent or
waiver is made upon this Senior Note.

         7. Obligations of Company. No reference herein to the Senior Indenture
and no provision of this Senior Note or of the Senior Indenture shall alter or
impair the obligation of the Company, which is absolute and unconditional, to
pay the principal of and any premium, if any, and interest on this Senior Note
at the time, place, and rate and in the coin or currency herein prescribed.

         8. Denominations, Transfer and Exchange. (a) The Senior Notes are
issuable only in registered form without coupons in denominations of $1,000 and
any integral multiple thereof. As provided in the Senior Indenture and subject
to certain limitations therein set forth, Senior Notes of this series are
exchangeable for a like aggregate principal amount of Senior Notes of this
series of a different authorized denomination, as requested by the Holder
surrendering the same.

                  (b) As provided in the Senior Indenture and subject to certain
limitations therein set forth, the transfer of this Senior Note is registrable
in the Security Register, upon surrender of this Senior Note for registration of
transfer at the office or agency of the Company in any place where the principal
of (and premium, if any) and interest on this Senior Note are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Company and the Security Registrar duly executed by the
Holder hereof or his attorney duly authorized in writing, and thereupon one or
more new Senior Notes of this series, and of like tenor, of authorized
denominations and for the same maturity and aggregate principal amount, shall be
issued to the designated transferee or transferees.

                  (c) No service charge shall be made for any such registration
of transfer or exchange, but the Company may require payment of a sum sufficient
to cover any tax or other governmental charge payable in connection therewith.
Prior to due presentment of this Senior Note for registration of transfer, the
Company, the Senior Trustee and any agent of the Company or the Senior Trustee
may treat the Person in whose name this Senior Note is registered as the owner
hereof for all purposes, whether or not this Senior Note be overdue, and neither
the Company, the Senior Trustee nor any such agent shall be affected by notice
to the contrary.

                                      I-8

<PAGE>

         9. No Liability of Certain Persons. A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under this Senior Note or the Senior Indenture or for
any claim based on, in respect of or by reason of, such obligations or their
creation. Each Holder, by accepting a Senior Note, waives and releases all such
liability. The waiver and release are part of the consideration for the issuance
of this Senior Note.

         10. Governing Law. The Senior Indenture and this Senior Note shall for
all purposes be governed by, and construed in accordance with, the internal laws
of the State of New York.

                                      I-9

<PAGE>

         THE FOLLOWING ABBREVIATIONS SHALL BE CONSTRUED AS THOUGH THE WORDS SET
FORTH BELOW OPPOSITE EACH ABBREVIATION WERE WRITTEN OUT IN FULL WHERE SUCH
ABBREVIATION APPEARS:

<TABLE>
<S>                                          <C>

TEN COM -- as tenants in common              (Name) CUST (Name) UNIF -- (Name) as Custodian
TEN ENT -- as tenants by the entirety        GIFT MIN ACT (state) for (name) under the (State)
JF TEN -- as joint tenants with                                       Uniform Gifts to
              right of survivorship                                   Junior Act
              and not as tenants
              in common

</TABLE>

ADDITIONAL ABBREVIATIONS MAY ALSO BE USED THOUGH NOT IN THE ABOVE LIST.

          -----------------------------------------------------------

To assign this Note, fill in the form below: (I) or (we) assign and transfer
this Note to

--------------------------------------------------------------------------------

             (Insert assignee's social security or tax I.D. number)

--------------------------------------------------------------------------------
              (Print or type assignee's name, address and zip code)

and irrevocably appoint                                       agent to transfer
                        --------------------------------------
this Note on the books of the Company. the agent may substitute another to act
for him.

<TABLE>
<S>                                 <C>

Dated:                               Your Signature:
         ------------------                          ---------------------------------------------
                                                     (Sign exactly as your name appears on the other
                                                     side of this Note)

Signature Guarantee:                 (Signatures must be guaranteed by an "eligible guarantor institution"
                                     meeting the requirements of the Transfer Agent, which requirements will
                                     include membership or participation in STAMP or such other "signature
                                     guarantee program" as may be determined by the Transfer Agent in
                                     addition to, or in substitution for, STAMP, all in accordance with the
                                     Exchange Act.)
</TABLE>

Social Security Number or Taxpayer Identification
Number:
         ----------------------------------------

                                      I-10<PAGE>

                         Executed in ____Counterparts of
                      which this is Counterpart No. ______

================================================================================

                                  THIRTY-SIXTH
                             SUPPLEMENTAL INDENTURE
                                       TO
                            INDENTURE OF MORTGAGE AND
                                  DEED OF TRUST
                            DATED AS OF MARCH 1, 1944

                                  ------------

                                 AS RESTATED IN
                           PART II OF THE TWENTY-NINTH
                SUPPLEMENTAL INDENTURE DATED AS OF JULY 15, 1989
                     WHICH BECAME EFFECTIVE ON APRIL 1, 1994

                                  ------------

                        MICHIGAN CONSOLIDATED GAS COMPANY
                                       TO
                                 CITIBANK, N.A.
                                     TRUSTEE
                           DATED AS OF AUGUST 15, 2001
                                  ------------

                   CREATING AN ISSUE OF FIRST MORTGAGE BONDS,
                                  DESIGNATED AS
                        6 1/8% COLLATERAL BONDS DUE 2008

================================================================================

<PAGE>

                        MICHIGAN CONSOLIDATED GAS COMPANY

                       THIRTY-SIXTH SUPPLEMENTAL INDENTURE
                           DATED AS OF AUGUST 15, 2001
                      SUPPLEMENTAL TO INDENTURE OF MORTGAGE
                                AND DEED OF TRUST
                            DATED AS OF MARCH 1, 1944

                                TABLE OF CONTENTS

                                  ------------

<Table>
<Caption>
                                                                            PAGE
                                                                            ----
<S>                                                                         <C>

                                    ARTICLE I

ESTABLISHMENT OF AN ISSUE OF FIRST MORTGAGE BONDS, OF THE SERIES
DESIGNATED AND DISTINGUISHED AS "COLLATERAL BONDS".............................3

         SECTION 1.............................................................3
         SECTION 2............................................................11
         SECTION 3............................................................11
         SECTION 4............................................................11
         SECTION 5............................................................12

                                   ARTICLE II

ISSUE OF COLLATERAL BONDS.................................................... 13

                                   ARTICLE III

THE TRUSTEE.................................................................. 13

                                   ARTICLE IV

MISCELLANEOUS PROVISIONS..................................................... 13

</Table>

<PAGE>

         THIS THIRTY-SIXTH SUPPLEMENTAL INDENTURE, dated as of the 15th day of
August, 2001, between MICHIGAN CONSOLIDATED GAS COMPANY, a corporation duly
organized and existing under and by virtue of the laws of the State of Michigan
(hereinafter called the "Company"), having its principal place of business at
500 Griswold Street, Detroit, Michigan, and CITIBANK, N.A. (formerly First
National City Bank), a national banking association incorporated and existing
under and by virtue of the laws of the United States of America, having an
office at 111 Wall Street in the Borough of Manhattan, The City of New York, New
York, successor to CITY BANK FARMERS TRUST COMPANY (hereinafter with its
predecessors as trustee called the "Mortgage Trustee" or the "Trustee"):

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee an Indenture of Mortgage and Deed of Trust (the "Original Indenture"),
dated as of March 1, 1944;

         WHEREAS, the Company has heretofore executed and delivered to the
Trustee the Twenty-ninth Supplemental Indenture, which became effective April 1,
1994, to provide for the modification and restatement of the Original Indenture
as previously amended (as so amended, supplemented and modified the
"Indenture"), and to secure the Company's First Mortgage Bonds, unlimited in
aggregate principal amount except as therein otherwise provided, issued pursuant
to the:

             Thirtieth Supplemental Indenture, dated as of September 1, 1991;
             Thirty-first Supplemental Indenture, dated as of December 15, 1991;
             Thirty-second Supplemental Indenture, dated as of January 5, 1993;
             Thirty-third Supplemental Indenture, dated as of May 1, 1995;
             Thirty-fourth Supplemental Indenture, dated as of November 1, 1996;
             and
             Thirty-fifth Supplemental Indenture, dated as of June 18, 1998;

         WHEREAS, at the date hereof there were outstanding First Mortgage Bonds
of the Company issued under the Indenture, of 6 series in the principal amounts
set forth below (including Collateral Bonds):

                                       1

<PAGE>

<TABLE>

                                                         AMOUNT                        AMOUNT
            DESIGNATION OF SERIES                   INITIALLY ISSUED                OUTSTANDING
            ---------------------                   ----------------                -----------
<S>                                                 <C>                           <C>

First Mortgage Bonds
  9-1/2% Series due 2021                              $40,000,000                 $40,000,000

First Mortgage Bonds
  (Secured Term Notes, Series A)
   8% Series due 2002                                 70,000,000                  17,314,000
   7-1/2% Series due 2020                             10,000,000                   9,608,000
   6-3/4% Series due 2023                             20,000,000                  15,100,000

First Mortgage Bonds
  (Secured Term Notes, Series B)
  8-1/4% Series due 2014                              80,000,000                  80,000,000
  7-1/2% Series due 2020                              20,000,000                  18,955,000
  7% Series due 2025                                  40,000,000                  40,000,000

First Mortgage Bonds
  (Secured Term Notes, Series B)
  6.72% Series due 2003                                4,150,000                   4,150,000
  6.80% Series due 2003                               15,850,000                  15,850,000
  7.15% Series due 2006                               40,000,000                  40,000,000
  7.06% Series due 2012                               40,000,000                  40,000,000

First Mortgage Bonds
  (Secured Medium-Term Notes, Series C)
  7.21% Series due 2007                               30,000,000                  30,000,000
  7.60% Series due 2017                               15,000,000                  14,680,000

Collateral Bonds
  (Remarketable Securities)
  Collateral Series A                                 75,000,000                  75,000,000
  Collateral Series B                                 75,000,000                  75,000,000

  (Senior Notes)
  Collateral Series C                                 55,000,000                  52,811,000
  Collateral Series D                                 55,000,000                  55,000,000
</TABLE>

                                       2

<PAGE>

         and

         WHEREAS, the Company desires in and by this Supplemental Indenture to
establish an issue of bonds to be issued under the Indenture of the series
established under the Thirty-fifth Supplemental Indenture, to designate the
terms thereof, to specify the particulars necessary to describe and define the
same and to specify such other provisions and agreements in respect thereof as
are in the Indenture provided or permitted; and

         WHEREAS, all the conditions and requirements necessary to make this
Supplemental Indenture, when duly executed and delivered, a valid, binding and
legal instrument in accordance with its terms and for the purposes herein
expressed, have been done, performed and fulfilled, and the execution and
delivery of this Supplemental Indenture in the form and with the terms hereof
have been in all respects duly authorized;

         NOW, THEREFORE, in consideration of the premises and in further
consideration of the sum of One Dollar in lawful money of the United States of
America paid to the Company by the Trustee at or before the execution and
delivery of this Thirty-sixth Supplemental Indenture, the receipt whereof is
hereby acknowledged, and of other good and valuable consideration, it is agreed
by and between the Company and the Trustee as follows:

                                   Article I
                          ESTABLISHMENT OF AN ISSUE OF
                       FIRST MORTGAGE BONDS, OF THE SERIES
               DESIGNATED AND DISTINGUISHED AS "COLLATERAL BONDS"

         Section 1. There is hereby established an issue of bonds to be issued
under and secured by the Indenture, to be known as "First Mortgage Bonds,"
designated and distinguished as "Collateral Bonds" of the Company (herein
collectively sometimes called the "Collateral Bonds") of the series established
under the Thirty-fifth Supplemental Indenture. The Collateral Bonds may be
issued without limitation as to aggregate principal amount except as provided in
the Indenture (including the Thirty-fifth Supplemental Indenture) and in this
Supplemental Indenture. The Collateral Bonds shall be registered bonds without
coupons and shall be dated as of the date of the authentication thereof by the
Mortgage Trustee.

         A separate issue of Collateral Bonds, designated "6 1/8% Collateral
Bonds due 2008," is being issued by the Company hereunder contemporaneously with
the issuance of a separate series of senior debt securities of the Company

                                       3

<PAGE>

designated as the Company's "6 1/8% Senior Notes due 2008" (the "Senior Notes")
and is being issued and assigned and delivered to Citibank, N.A., as trustee (in
such capacity, together with any successor trustee(s), the "Senior Trustee")
under the Indenture, dated as of June 1, 1998, as amended, supplemented and
modified, governing such senior debt securities (as so amended, supplemented and
modified, the "Senior Indenture"), in such capacity, as collateral for the
benefit of the holders of the Senior Notes. The series of such senior debt
securities collateralized by any Collateral Bonds issued hereunder shall be
referred to as the "Related Notes" with respect to such Collateral Bonds.

         The issue of Collateral Bonds established hereby shall bear interest at
such rate or rates and be payable on such date or dates, shall mature and be
subject to mandatory or optional redemption on such date or dates and shall have
such other terms and provisions not inconsistent with the Indenture as are set
forth in the form of Collateral Bond, and the form of Trustee's Certificate to
be endorsed on such bonds, as are set forth substantially in the following forms
respectively (herein sometimes called the "Bond Form"):

                            FORM OF COLLATERAL BONDS

No. R-1                                                         Principal Amount

                                                                    $200,000,000

                        MICHIGAN CONSOLIDATED GAS COMPANY
             FIRST MORTGAGE BONDS, 6 1/8% COLLATERAL BONDS DUE 2008
                                being a series of
                              FIRST MORTGAGE BONDS

ORIGINAL ISSUE DATE: AUGUST 22, 2001

MATURITY DATE: SEPTEMBER 1, 2008

THE FIRST MORTGAGE BONDS, 6 1/8% COLLATERAL BONDS DUE 2008 (HEREINAFTER,
"COLLATERAL BONDS"), REPRESENTED BY THIS CERTIFICATE ARE BEING ISSUED AND
DELIVERED BY THE COMPANY TO CITIBANK, N.A., AS TRUSTEE (IN SUCH CAPACITY, THE
"SENIOR TRUSTEE") UNDER AN INDENTURE, DATED AS OF JUNE 1, 1998, BETWEEN THE
COMPANY AND THE SENIOR TRUSTEE, AS AMENDED, SUPPLEMENTED AND MODIFIED FROM TIME
TO TIME AND AS SUPPLEMENTED BY THE SUPPLEMENTAL INDENTURE

                                       4

<PAGE>

THERETO DATED AS OF AUGUST 15, 2001 (AS SO AMENDED, SUPPLEMENTED AND MODIFIED,
THE "SENIOR INDENTURE"). THE COLLATERAL BONDS ARE TO BE HELD IN TRUST AS
COLLATERAL FOR THE BENEFIT OF THE HOLDERS OF $200,000,000 AGGREGATE PRINCIPAL
AMOUNT OF 6 1/8% SENIOR NOTES DUE 2008 (THE "RELATED NOTES") ISSUED PURSUANT TO
THE SENIOR INDENTURE.

THE COLLATERAL BONDS MAY NOT BE SOLD OR OTHERWISE TRANSFERRED (EXCEPT TO A
SUCCESSOR TRUSTEE UNDER THE SENIOR INDENTURE) UNTIL THE EARLIER OF THE RELEASE
DATE (AS DEFINED BELOW) OR THE PRIOR RETIREMENT OF THE RELATED NOTES THROUGH
REDEMPTION, REPURCHASE OR OTHERWISE.

THE INTEREST RATE ON THE COLLATERAL BONDS SHALL AT ALL TIMES BE IDENTICAL TO
THAT OF, AND SHALL BE ESTABLISHED IN THE MANNER SET FORTH IN, THE RELATED NOTES.

THE INTEREST PAYMENT DATES IN RESPECT OF THE COLLATERAL BONDS SHALL AT ALL TIMES
BE IDENTICAL TO THOSE OF, AND SHALL BE ESTABLISHED IN THE MANNER SET FORTH IN,
THE RELATED NOTES.

THE COMPANY SHALL MAKE PAYMENTS OF THE PRINCIPAL OF, AND PREMIUM, IF ANY, AND
INTEREST ON, THE COLLATERAL BONDS, TO THE SENIOR TRUSTEE, WHICH PAYMENTS SHALL
BE APPLIED BY THE SENIOR TRUSTEE TO THE SATISFACTION OF OBLIGATIONS ON THE
RELATED NOTES.

THE MATURITY DATE SPECIFIED ABOVE IS ALSO THE MATURITY DATE OF THE RELATED
NOTES.

         MICHIGAN CONSOLIDATED GAS COMPANY (hereinafter called the "Company"), a
corporation of the State of Michigan, for value received, hereby promises to pay
to CITIBANK, N.A., as trustee for the benefit of the holders of the Related
Notes, or registered assigns (in such capacity, the "Senior Trustee"), the sum
of Two Hundred Million Dollars ($200,000,000) on the Maturity Date specified
above, at the corporate trust office of the Mortgage Trustee hereinafter named
in the Borough of Manhattan, The City of New York, New York, or at the principal
office of any successor in trust, in lawful money of the United States of
America, and to pay interest thereon at the Interest Rate(s) from time to time
specified in or determined pursuant to the Related Notes, in like lawful money
payable at the office or agency of the Company in the Borough of Manhattan, The

                                       5

<PAGE>

City of New York, New York on such interest payment date(s) and on the Maturity
Date (each an "Interest Payment Date") as provided in the Related Notes, from
the Original Issue Date specified above or from the most recent Interest Payment
Date to which interest has been paid, commencing on the Interest Payment Date
next succeeding the Original Issue Date, until the Company's obligation with
respect to the payment of such principal sum shall be discharged as provided in
the Indenture hereinafter mentioned and the Senior Indenture. If the date of the
Collateral Bonds represented by this certificate is after a Record Date (as
defined below) with respect to any Interest Payment Date and prior to such
Interest Payment Date, then payment of interest shall commence on the second
Interest Payment Date succeeding such date. If the Company shall default in the
payment of interest due on any Interest Payment Date, then interest shall be
payable from the next preceding Interest Payment Date to which interest has been
paid, or, if no such interest has been paid on the Collateral Bonds represented
by this certificate, from the Original Issue Date. So long as there is no
existing default in the payment of interest, the person in whose name the
Collateral Bonds represented by this certificate were registered at the close of
business on the relevant Record Date with respect to an Interest Payment Date
shall be entitled to receive the interest payable on such Interest Payment Date,
except that if the Company shall default in the payment of interest due on such
Interest Payment Date, such defaulted interest shall be paid to the person in
whose name the Collateral Bonds represented by this Certificate are registered
on the Record Date for the Interest Payment Date fixed by the Company for the
payment of such defaulted interest, provided that in no case shall such Record
Date be less than ten days after notice thereof shall have been mailed to all
registered holders of Collateral Bonds. The term "Record Date" as used herein
with respect to any Interest Payment Date otherwise shall mean the fifteenth
calendar (whether or not a Business Day) prior to such Interest Payment Date.

         "Business Day" means any day other than a day on which banking
institutions in The State of New York or the State of Michigan are authorized or
obligated pursuant to law or executive order to close. In the event that any
Interest Payment Date, redemption date or maturity date is not a Business Day,
then the required payment of principal, premium, if any, and interest will be
made on the next succeeding day that is a Business Day (and without any interest
or other payment in respect of any such delay).

         The bonds represented by this certificate, of the series hereinafter
specified, are bonds of the Company (herein called the "bonds") known as its
"First Mortgage Bonds," issued and to be issued in one or more series under, and
all equally and ratably secured by, an Indenture of Mortgage and Deed of Trust
dated as of March 1, 1944, duly executed by the Company to City Bank Farmers

                                       6

<PAGE>

Trust Company (now known as Citibank, N.A., successor trustee, as "Mortgage
Trustee") and Ralph E. Morton as restated in Part II of the Twenty-ninth
Supplemental Indenture dated as of July 15, 1989, which became effective on
April 1, 1994, to which indenture and all indentures supplemental thereto
executed on and after July 15, 1989 reference is hereby made for a description
of the property mortgaged and pledged, the nature and extent of the security,
the terms and conditions upon which the bonds are, and are to be, issued and
secured, and the rights of the holders of the bonds and of the Mortgage Trustee
in respect of such security (which indenture and all indentures supplemental
thereto, including the Thirty-sixth Supplemental Indenture dated as of August
15, 2001, are hereinafter collectively called the "Original Indenture"). As
provided in the Original Indenture, the bonds may be for various principal sums
and are issuable in series, which may mature at different times, may bear
interest at different rates and may otherwise vary as therein provided. The
bonds represented by this certificate are part of a Series designated
"Collateral Bonds," herein called Collateral Bonds, created by the Thirty-fifth
Supplemental Indenture, dated as of June 18, 1998, as supplemented by the
Thirty-sixth Supplemental Indenture dated as of August 15, 2001, as provided for
in the Indenture.

         With the consent of the Company and to the extent permitted by and as
provided in the Indenture and the Senior Indenture, the rights and obligations
of the Company and/or the rights of the holders of the issue of Collateral Bonds
established by the Thirty-sixth Supplemental Indenture and/or the terms and
provisions of the Indenture may be modified or altered by such affirmative vote
or votes of the holders of the Related Notes then outstanding as are specified
in the Senior Indenture.

         The Collateral Bonds shall be redeemed if and to the extent Related
Notes are redeemed, as provided in the Senior Indenture with respect to the
Related Notes and in the Related Notes.

         In case an Event of Default as defined in the Indenture or the Senior
Indenture shall occur, the principal of the Collateral Bonds may become or be
declared due and payable in the manner, with the effect, and subject to the
conditions provided in the Indenture and the Senior Indenture.

         The Senior Trustee has agreed pursuant to the Senior Indenture to hold
the Collateral Bonds as collateral for the benefit of the holders of the Related
Notes under all circumstances and not to transfer (except to a successor
trustee) such Collateral Bonds until the earlier of the Release Date or the
prior retirement of the Related Notes through redemption, repurchase or
otherwise. "Release Date" means the date on which all First Mortgage Bonds of
the Company issued and

                                       7

<PAGE>

outstanding under the Original Indenture, other than the Collateral Bonds, have
been retired (at, before or after the maturity thereof) through payment,
redemption or otherwise provided that no default or event of default has
occurred and is continuing under the Senior Indenture. On the Release Date, the
Senior Trustee shall deliver to the Company for cancellation all Collateral
Bonds, and the Company shall cause the Senior Trustee to provide notice to all
holders of Related Notes of the occurrence of the Release Date. As a result, on
the Release Date, the Collateral Bonds shall cease to secure the Related Notes,
and, at the option of the Company, the Related Notes, either (i) will become
unsecured general obligations of the Company or (ii) will be secured by
substituted Collateral Bonds. Following the Release Date, the Company shall
cause the Indenture to be closed, and the Company shall not issue any additional
Collateral Bonds to be issued thereunder. From and after the Release Date, the
Company's obligations in respect of the Collateral Bonds shall be satisfied and
discharged.

         No recourse shall be had for the payment of the principal of, or the
interest on, the Collateral Bonds, or for any claim based hereon or otherwise in
respect of the Collateral Bonds or the Indenture, the Senior Indenture or any
indenture supplemental to either thereof, or against any incorporator,
stockholder, director or officer, past, present or future, of the Company, as
such, or any predecessor or successor corporation, either directly or through
the Company or any such predecessor or successor corporation, whether by virtue
of any constitution, statute or rule of law, or by the enforcement of any
assessment or penalty or otherwise, all such liability, whether at common law,
in equity, by any constitution, statute or otherwise, of incorporators,
stockholders, directors or officers being waived and released by the owner
hereof and every owner of any Related Note by the acceptance of the Collateral
Bonds or such Related Note, as the case may be, and as part of the consideration
for the issue thereof, and being likewise waived and released pursuant to the
Indenture and the Senior Indenture.

         This bond shall not be valid or become obligatory for any purpose
unless and until the certificate of authentication hereon shall have been
manually executed by the Mortgage Trustee or its successor in trust under the
Indenture.

                                       8

<PAGE>

         IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this
certificate to be executed under its name with the signature of its duly
authorized Officer, under its corporate seal, which may be a facsimile, attested
with the signature of its Assistant Corporate Secretary.

  Dated:  August 22, 2001

                                            MICHIGAN CONSOLIDATED GAS COMPANY

                                            By:
                                               ---------------------------------

Attest:

         The bonds represented by this certificate constitute Collateral Bonds
of the series designated and described in the within-mentioned Indenture.

                                            CITIBANK, N.A., as Mortgage Trustee

                                            By:
                                               ---------------------------------
                                                      Authorized Officer

                                       9

<PAGE>

         So long as there is no existing default in the payment of interest on
the Collateral Bonds, all Collateral Bonds authenticated by the Trustee after
the Record Date specified for any Interest Payment Date, and prior to such
Interest Payment Date (unless the issue date hereinafter specified is after such
Record Date) shall be dated the date of authentication, but shall bear interest
from such Interest Payment Date, and the person in whose name any Collateral
Bond is registered at the close of business on any Record Date with respect to
any Interest Payment Date shall be entitled to receive the interest payable on
such Interest Payment Date notwithstanding any transfer or exchange of such
Collateral Bond subsequent to the Record Date and on or prior to such Interest
Payment Date, except if and to the extent the Company shall default in the
payment of the interest due on such Interest Payment Date, in which case such
defaulted interest shall be paid to the person in whose name such Collateral
Bond is registered on the Record Date for the special Interest Payment Date
fixed by the Company for the payment of such defaulted interest, provided that
in no case shall such Record Date be less than ten days after notice thereof
shall have been mailed to all registered holders of Collateral Bonds; and
provided that interest payable on a maturity date shall be payable to the person
to whom the principal thereof is payable. If the issue date of any Collateral
Bond is after such Record Date, such Collateral Bond shall bear interest from
the issue date but payment of interest shall commence on the second Interest
Payment Date next succeeding the issue date. Any notice which is mailed as
herein provided shall be conclusively presumed to have been properly and
sufficiently given on the date of such mailing, whether or not the holder
receives notice.

         The terms "Interest Payment Date", "Record Date" and "Business Day" as
used herein are defined in the Bond Form.

         The term "issue date" as used herein with respect to the issue of
Collateral Bonds established hereby shall mean the date of first authentication
of such Collateral Bonds.

         As used in this Section 1, the term "default in the payment of
interest" means failure to pay interest on the applicable Interest Payment Date
disregarding any period of grace permitted by Section 9.01 of the Indenture.

         The Company shall make payments of the principal of, and premium or
interest on, the Collateral Bonds to the Senior Trustee, which payments shall be
applied by the Senior Trustee to satisfaction of obligations on the Related
Notes in respect of such Collateral Bonds.

                                       10

<PAGE>

         SECTION 2. The issue of Collateral Bonds established hereby shall be
redeemed if and to the extent the Related Notes with respect to such Collateral
Bonds are redeemed, as provided in the Senior Indenture and in such Related
Notes. The redemption price in respect of any Collateral Bonds (including
principal, premium, if any, and interest thereon) shall be the redemption price
applicable to the Related Notes with respect to such Collateral Bonds. Any
notice required to be furnished to the holders of the Collateral Bonds or the
Trustee relating to the redemption of such Collateral Bonds shall be considered
furnished by the delivery of appropriate notice to the holders of the Related
Notes or the Senior Trustee, as the case may be, as provided in the Senior
Indenture and the Related Notes with respect to such Collateral Bonds. Any
redemption payment made by the Company on the Related Notes (whether for
principal, premium, if any, or interest) shall be applied by the Senior Trustee
as payment of the redemption price in respect of the correspondingly redeemed
Collateral Bonds. In the event the Related Notes with respect to the issue of
Collateral Bonds established hereby are redeemed in part, an equivalent
aggregate principal amount of the issue of Collateral Bonds established hereby
shall be so redeemed, the Senior Trustee, as holder of the Collateral Bonds as
collateral for such Related Notes, shall deliver to the Mortgage Trustee for
cancellation an equivalent principal amount of the issue of Collateral Bonds
established hereby corresponding to the Related Notes so redeemed, and the
Company shall execute and the Mortgage Trustee shall authenticate and deliver,
without charge, to the Senior Trustee, as holder thereof, one or more new
Collateral Bonds of authorized denominations for the unredeemed balance of any
Collateral Bonds surrendered for redemption in connection with the redemption of
the Related Notes.

         SECTION 3. The Collateral Bonds shall be registered bonds without
coupons. The Mortgage Trustee shall be the registrar and paying agent for the
Collateral Bonds, which duties it hereby accepts. Collateral Bonds may be issued
in the denomination of $1,000 or any integral multiple thereof.

         SECTION 4. As further provided in the Bond Form, the Collateral
Bonds shall not be assignable or transferable except as may be set forth under
Article IV of the Senior Indenture, or, subject to compliance with applicable
law, as may be involved in the course of the exercise of rights and remedies
consequent upon an Event of Default under the Senior Indenture. Subject to the
foregoing, the Collateral Bonds shall be exchangeable upon surrender thereof at
the corporate trust office of the Trustee in the Borough of Manhattan, The City
of New York, New York, for registered bonds of the same aggregate principal
amount and other terms, but of different authorized denomination or
denominations, such exchanges to be made without service charge (except for any
stamp tax or other governmental charge).

                                       11

<PAGE>

         Every bond so surrendered shall be accompanied by a proper transfer
power duly executed by the registered owner or by duly authorized attorney
transferring such bond to the Company, and the signature to such transfer power
shall be guaranteed to the satisfaction of the Trustee. All bonds so surrendered
shall be forthwith canceled and delivered to or upon the order of the Company.
All bonds executed, authenticated and delivered in exchange for bonds so
surrendered shall be valid obligations of the Company, evidencing the same debt
as the bonds surrendered, and shall be secured by the same lien and be entitled
to the same benefits and protection as the bonds in exchange for which they are
executed, authenticated and delivered.

         The Company shall not be required to make any such exchange or any
registration of transfer (1) during a period of fifteen days next preceding any
Interest Payment Date, but only if there is an existing default in the payment
of interest on the Collateral Bonds on which such payment is due or (2) after
the bond so presented for exchange or registration of transfer, or any portion
thereof, has been called for redemption and notice thereof given to the
registered owner.

         SECTION 5. Pending the preparation of definitive Collateral Bonds, the
Company may from time to time execute, and upon its written order, the Trustee
shall authenticate and deliver, in lieu of such definitive bonds and subject to
the same provisions, limitations and conditions, one or more temporary bonds, in
registered form, of any denomination specified in the written order of the
Company for the authentication and delivery thereof, and with such omissions,
insertions and variations as may be determined by the Board of Directors of the
Company. Such temporary bonds shall be substantially of the tenor of the bonds
to be issued as herein before recited.

         If any such temporary Collateral Bonds shall at any time be so
authenticated and delivered in lieu of definitive bonds, the Company shall upon
request at its own expense prepare, execute and deliver to the Trustee and
thereupon, upon the presentation and surrender of temporary bonds, the Trustee
shall authenticate and deliver in exchange therefor, without charge to the
holder, definitive bonds of the same series and other terms, if any, and for the
same principal sum in the aggregate as the temporary bonds surrendered. All
temporary bonds so surrendered shall be forthwith canceled by the Trustee and
delivered to or upon the order of the Company. Until exchanged for definitive
bonds the temporary bonds shall in all respects be entitled to the lien and
security of the Indenture and all supplemental indentures.

                                       12

<PAGE>

                                  ARTICLE II
                            ISSUE OF COLLATERAL BONDS

         The Company hereby increases the principal amount of Collateral Bonds
of the Thirty-second Series issuable under the Indenture to $500,000,000, in
addition to the aggregate principal amount of Collateral Bonds previously
issued, subject to change from time to time as permitted by the provisions of
the Indenture, without the consent of the holders of the Collateral Bonds, and
subject further to the provisions of the Indenture with respect to exchanges and
replacements of bonds. Collateral Bonds in the aggregate principal amount of
$200,000,000 in respect of the Related Notes may be executed, authenticated and
delivered from time to time as permitted by the provisions of the Indenture,
including with respect to exchange and replacement of bonds. The Company further
may, without the consent of the holders of the Collateral Bonds, "reopen" the
issue of Collateral Bonds established hereby so as to increase the aggregate
principal amount of such Collateral Bonds outstanding under the Indenture in
compliance with the procedures set forth in the Indenture, to equal the
aggregate principal amount of Related Notes outstanding upon a "reopening" of
such series, so long as any such additional Collateral Bonds have the same tenor
and terms as the issue of Collateral Bonds established hereby.

                                  ARTICLE III
                                   THE TRUSTEE

         The Trustee shall not be responsible in any manner whatsoever for or in
respect of the validity or sufficiency of this Supplemental Indenture or the due
execution hereof by the Company, or for or in respect of the recitals and
statements contained herein, all of which recitals and statements are made
solely by the Company.

         Except as herein otherwise provided, no duties, responsibilities or
liabilities are assumed, or shall be construed to be assumed, by the Trustee by
reason of this Supplemental Indenture other than as set forth in the Indenture
and this Supplemental Indenture is executed and accepted on behalf of the
Trustee, subject to all the terms and conditions set forth in the Indenture, as
fully to all intents as if the same were herein set forth at length.

                                   ARTICLE IV
                            MISCELLANEOUS PROVISIONS

         Except insofar as herein otherwise expressly provided, all the
provisions, terms and conditions of the Indenture shall be deemed to be
incorporated in, and

                                       13

<PAGE>

made a part of, this Thirty-sixth Supplemental Indenture and the Twenty-ninth
Supplemental Indenture dated as of July 15, 1989, by the Thirtieth Supplemental
Indenture dated as of September 1, 1991, by the Thirty-first Supplemental
Indenture dated as of December 15, 1991, by the Thirty-second Supplemental
Indenture dated as of January 5, 1993, by the Thirty-third Supplemental
Indenture dated as of May 1, 1995, by the Thirty-fourth Supplemental Indenture
dated as of November 1, 1996, by the Thirty-fifth Supplemental Indenture dated
as of June 18, 1998 and by this Supplemental Indenture is in all respects
ratified and confirmed; and the Indenture and said Supplemental Indentures shall
be read, taken and construed as one and the same instrument.

         Except to the extent specifically provided therein, no provision of
this Supplemental Indenture or any future supplemental indenture is intended to
modify, and the parties do hereby adopt and confirm, the provisions of Section
318(c) of the Trust Indenture Act, which amend and supersede provisions of the
Indenture in effect prior to November 15, 1990.

         Nothing in this Supplemental Indenture is intended, or shall be
construed, to give to any person or corporation, other than the parties hereto
and the holders of Collateral Bonds issued and to be issued under and secured by
the Indenture, any legal or equitable right, remedy or claim under or in respect
of this Supplemental Indenture, or under any covenant, condition or provision
herein contained, all the covenants, conditions and provisions of this
Supplemental Indenture being intended to be, and being, for the sole and
exclusive benefit of the parties hereto and of the holders of bonds issued and
to be issued under the Indenture and secured thereby.

         All covenants, promises and agreements in this Supplemental Indenture
contained by or on behalf of the Company shall bind its successors and assigns
whether so expressed or not.

         This Supplemental Indenture may be executed in any number of
counterparts, and each of such counterparts when so executed shall be deemed to
be an original; but all such counterparts shall together constitute but one and
the same instrument.

                                       14

<PAGE>

         IN WITNESS WHEREOF, MICHIGAN CONSOLIDATED GAS COMPANY has caused this
Supplemental Indenture to be executed by its duly authorized Officer, and its
corporate seal to be hereunto affixed, and Citibank, N.A., as Mortgage Trustee
as aforesaid, has caused the same to be executed by one of its authorized
signatories and its corporate seal to be hereunto affixed, on the respective
dates of their acknowledgments hereinafter set forth, as of the date and year
first above written.

MICHIGAN CONSOLIDATED GAS COMPANY

By:  /s/ Robert J. Buckler
     -------------------------------------
     Name: Robert J. Buckler
     Title: Group President

Signed, sealed, acknowledged and
delivered by MICHIGAN CONSOLIDATED
GAS COMPANY in the presence of:

/s/ Nancy M. Kosch
------------------------------------------
Nancy M. Kosch

/s/ Janet G. Seefried
------------------------------------------
Janet G. Seefried

Citibank, N.A., as Mortgage Trustee,

By:  /s/ Wafaa Orfy
     -------------------------------------
     Name: Wafaa Orfy
     Title: Assistant Vice President

<PAGE>

         Signed, sealed, acknowledged and
         delivered by CITIBANK, N.A.
         in the presence of:

     /s/ Cindy Tsang
     --------------------------------------
         Cindy Tsang

     /s/ Jenny Cheng
     --------------------------------------
         Jenny Cheng

                                       16

<PAGE>

State of Michigan  }
                   } ss.
County of Wayne    }

         The foregoing instrument was acknowledged before me this 16th day of
August, 2001, by Robert J. Buckler, of MICHIGAN CONSOLIDATED GAS COMPANY, a
Michigan corporation, on behalf of the corporation.

                                           /s/ Susan E. Riske
                                           -------------------------------
                                           Notary Public, Wayne County, Michigan
                                           My Commission Expires: 9/25/03

State of New York  }
                   } ss.
County of New York }

         The foregoing instrument was acknowledged before me this 16th day of
August, 2001, by Wafaa Orfy, as Assistant Vice President of Citibank, N.A., a
national banking association, on behalf of the association, as Trustee, as in
said instrument described.

                                           /s/ Peter M. Pavlyshin
                                           --------------------------------
                                           Notary Public, State of New York
                                           No. 41-4991297
                                           Commission Expires: Jan. 27, 2002

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