Nautilus Pipeline Company, LLC

Original Volume No. 1

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Effective Date: 09/01/2002, Docket: RP00-392-001, Status: Effective

Third Revised Sheet No. 163 Third Revised Sheet No. 163 : Effective

Superseding: Second Revised Sheet No. 163

GENERAL TERMS AND CONDITIONS

19. OPERATIONAL FLOW ORDERS con't

19.3 Penalties

To the extent Transporter issues an operational flow

order and Shipper(s) does not comply with such order,

Transporter will assess and Shipper will be obligated

to pay Transporter a charge of $40 per Dth for any

quantities that are not within a 5% tolerance for

failure to comply with such order. Such fee will be

assessed on each Dth of Natural Gas received into or

delivered out of Transporter's Pipeline Facilities when

such receipts and/or deliveries are not in compliance

with any operational flow order in effect.