Egan Hub Storage, LLC

First Revised Volume No. 1

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Effective Date: 02/01/2009, Docket: RP09-160-000, Status: Effective

Second Revised Sheet No. 131 Second Revised Sheet No. 131

Superseding: First Revised Sheet No. 131

GENERAL TERMS AND CONDITIONS

(Continued)

(i) Penalties: All quantities tendered to Egan Hub and/or taken

by Customer on a daily basis in violation of an Action Alert

or OFO shall constitute unauthorized receipts or deliveries

for which the applicable Action Alert or OFO penalty charge

stated below shall be assessed.

(1) Action Alert penalty charge for each Dekatherm of Gas

by which Customer deviated from the requirements of

the Action Alert equal to an Action Alert Index Price

calculated as 110% of the applicable daily Gas Daily

posting for the interconnected pipeline on which the

deviation occurred for the Day on which the deviation

occurred, multiplied by the quantity by which the

Customer deviated from the requirements of the Action

Alert.

(2) OFO penalty charge for each Dekatherm of Gas by which

Customer deviated from the requirements of the OFO

equal to an OFO Index Price calculated as three (3)

times the applicable daily Gas Daily posting for the

interconnected pipeline on which the deviation

occurred for the Day on which the deviation occurred,

multiplied by the quantity by which Customer deviated

from the requirements of the OFO.

Any penalty revenue collected by Egan Hub pursuant to this

Section 5.5(i), less any costs incurred by Egan Hub in an

attempt to mitigate an Action Alert or OFO and the resulting

penalties, shall be credited to those firm and Interruptible

Customers that did not incur Action Alert or OFO penalties

pursuant to this Section 5.5(i) in the Month for which

Action Alert or OFO penalty revenues were received ("Non-

Offending Customers"), based on the ratio of the total

charges paid during that Month by the Non-Offending Customer

to the sum of the total charges paid during that Month by

all Non-Offending Customers. Such credits shall be

calculated for each Month of the twelve (12) Month period

ending August 31 of each year, and will be included on the

Non-Offending Customer's invoice for the Month following the

date of the final Commission order approving Egan Hub's

penalty disbursement report; provided however that Egan Hub

will calculate and include such credits on Non-Offending

Customers' invoices for a period shorter than twelve Months

in the event and to the extent that the total accumulated

amount of Action Alert or OFO penalty revenue collected

pursuant to this Section 5.5(i) by Egan Hub as of the end of

any Month exceeds $1,000,000. Egan Hub will file a penalty

disbursement report within sixty days of August 31 or sixty

days after the end of the Month for which revenue collected

exceeds $1,000,000. Any penalty revenue credited to Non-

offending Customers pursuant to this section shall include

interest calculated in accordance with Section 154.501(d) of

the Commission's regulations.