Garden Banks Gas Pipeline, LLC

Original Volume No. 1

Effective Date: 04/16/1997, Docket: CP96-678-001, Status: Effective

Original Sheet No. 97 Original Sheet No. 97 : Effective

GENERAL TERMS AND CONDITIONS

16. PENALTY WAIVERS

In recognition of the fact that each penalty provision in this FERC

Gas Tariff is intended to promote conscientious operations by the

Shipper such that service to other Shippers is not impaired in any

way, Transporter may waive any penalty charges incurred by Shipper if

Transporter determines, in its reasonable judgment, that Shipper was

conducting its operations in a responsible manner at the time the

penalty charges were incurred and that Shipper's conduct did not

impair service to another Shipper. Transporter must grant waivers

under this section on a non-discriminatory basis, but the waiver of

any penalty charges shall not constitute an automatic waiver of any

future penalty charges.

Transporter shall maintain a record of all waivers granted under this

Section 16 and shall make such record available upon request to the

Commission and to any Shipper.