Garden Banks Gas Pipeline, LLC

Original Volume No. 1

Effective Date: 05/10/2010, Docket: RP10-594-000, Status: Effective

Third Revised Sheet No. 93 Third Revised Sheet No. 93

Superseding: Second Revised Sheet No. 93

GENERAL TERMS AND CONDITIONS

15. OPERATIONAL FLOW ORDERS

15.1 General

Transporter shall have the right to issue operational flow orders

(OFO) as specified in this Section 15 which require actions by the

Shippers in order to alleviate conditions which threaten the

integrity of Transporter's Facility, to maintain pipeline

operations at the pressures required to provide an efficient and

reliable transportation service to all Shippers, and to maintain

Transporter's Facility in balance for the foregoing purposes.

Before issuing an OFO, Transporter will attempt to identify

specific Shippers causing a problem and attempt to remedy those

problems with those Shippers. If an OFO is issued by Transporter

pursuant to this Section 15, Transporter shall not be required to

curtail or suspend service to a Shipper(s) whose current use of

Transporter's Facility mitigates the operating conditions on which

the OFO is based regardless of the class of service utilized by

that Shipper(s). Shipper's response to any specified gas

quantities provision contained in an OFO shall be subject to the

provisions of Section 15.2 to the extent that the actual

quantities of gas involved in Shipper's response to the OFO are

greater than one hundred and five (105) percent or less than

ninety-five (95) percent of the specified gas quantities provision

contained in the OFO.

15.2 Penalty

(a) All quantities tendered to Transporter and/or taken by

Shipper(s) on a daily basis in violation of Transporter's

OFO shall constitute unauthorized receipts or deliveries for

which a charge of $25 per Dth shall be assessed and paid by

Shipper(s).

(b) Penalty Crediting: Net penalties shall be credited back to

shippers that complied with the OFO (compliant shippers).

Transporter's out-of-pocket expenses incurred or revenues

foregone as a direct result of the OFO violation(s) shall

reduce any penalties collected to determine the net penalty

amount to be credited. The net penalty amount shall be

credited to the second month's invoice from the month of

collection and shall be credited based on the pro rata share

of transportation revenue reflected on each compliant

shipper's invoice for the month of the OFO violation. If

direct expenses or foregone revenues are greater than the

penalty collected no crediting shall occur.