Nautilus Pipeline Company, LLC

Original Volume No. 1

Effective Date: 04/05/2010, Docket: RP10-475-000, Status: Effective

Fourth Revised Sheet No. 164 Fourth Revised Sheet No. 164

Superseding: Third Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS

20. RESOLUTION OF IMBALANCES

20.1 Shipper's Duty to Control Imbalances

A Shipper receiving any transportation service from Transporter

will use, or will cause any party receiving or delivering

Shipper's Natural Gas to use, all reasonable efforts to ensure

that receipts and deliveries of Natural Gas are equal to the

quantities scheduled by Transporter.

20.2 Resolution of Monthly Imbalances

All imbalances accrued by Shipper under its Service Agreements

shall be resolved on a monthly basis pursuant to the provisions

herein. No imbalance charge should be imposed when a prior period

adjustment applied to the current period causes or increases a

current monthly charge. Transporter will calculate, for each

Service Agreement, the difference (imbalance) which exists between

(i) the summation of the actual quantities of gas received from

Shipper or for Shipper's account each Day at the Point(s) of

Receipt during the Month and (ii) the summation of actual

quantities of gas delivered to Shipper or for Shipper's account

each Day at the Point(s) of Delivery during the Month. All such

imbalances accrued by Shipper under each of its Service Agreements

will be combined to derive a "Net Monthly Imbalance" (NMI) (in

Dth).

(a) On or about the tenth (10th) Business Day after the end of

the production Month, Transporter shall post on its Internet

Web Site the Net Monthly Imbalance accrued by each Shipper

during the previous Month, provided Shipper notifies

Transporter's Transportation Services Department by

submitting a Trading Election Form no later than three (3)

Business Days after the end of the Month to post its Net

Monthly Imbalance for said Month. After the Net Monthly

Imbalances are posted, a Shipper will have five (5) Business

Days (Trading Period) within which to trade its offsetting

Net Monthly Imbalance with another Shipper. Both Shippers

that agree to trade all or part of their Net Monthly

Imbalance must notify Transporter's Transportation Services

Department in writing on the form of Confirmation of

Agreement to Trade Imbalances by 5:00 p.m. Central Clock

Time on the last Day of the Trading Period. [Trading

Election Form and Confirmation of Agreement to Trade

Imbalances Form shall be available for downloading on

Transporter's Internet Web Site.]