Dominion South Pipeline Co., LP

Original Volume No. 1

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Effective Date: 12/16/2005, Docket: CP05- 77-001, Status: Effective

Original Sheet No. 1096 Original Sheet No. 1096 : Effective

GENERAL TERMS AND CONDITIONS

OVERRUNS, PENALTIES AND REVENUE CREDITING

37.5 Crediting of Penalty Revenues.

A. Pipeline shall credit each month a subaccount of Account No. 254 by the penalty

revenues, net of Related Costs, received by Pipeline from its customers pursuant to

GT&C Sections 18.5, 37.2 and 37.3. The monthly penalty revenues entered into the

subaccount shall be identified by Customer and by Rate Schedule so that Pipeline can

determine the identity of Offending and Non-Offending Customers taking service under

each Firm Transportation Rate Schedule. On July 31 of each year, Pipeline shall

credit the April 30 balance of the subaccount, including Interest, to the appropriate

customers by means of a cash payment via check or wire transfer. Where a credit

amount due to any customer is less than $10,000, Pipeline shall have the option to

provide the amount by means of a credit to that customer's bill, which shall be

separately identified as such a credit. Where there is no Non-Offending Customer in

a particular month, Pipeline may retain any penalty revenue.

B. Pipeline shall allocate penalty revenues received each month from transportation

customers among eligible Non-Offending Customers in proportion to transportation

reservation revenues received.

C. Within 30 days of the annual crediting of the amounts required under this section,

Pipeline shall file a report with the Commission setting forth, by month, the amount

of penalty revenues received from Offending Customers, Related Costs that Pipeline

netted against such revenues and the penalty revenues allocated to each Non-Offending

Customer. The report shall detail the nature of Related Costs and the nexus between

the incurrence of Related Costs and the action that resulted in a penalty. To the

extent that the Commission finds that Pipeline has not demonstrated that the "Related

Costs" reported by Pipeline qualify as such under the definition set forth in GT&C

Section 37.5.D, Pipeline shall return any such amounts to the relevant subaccount

with interest.

D. The following definitions shall apply to this Section 37.5:

1. "Related Costs" are all out-of-pocket costs incurred as a direct result of an

Offending Customer's imbalance, unauthorized overrun, failure to abide by an OFO,

or other misconduct, to the extent that Pipeline demonstrates that the costs are

not already recovered in rates.

2. "Non-Offending Customers" are Pipeline's customers, including Customers paying

Negotiated Rates, that were not assessed a penalty by Pipeline in the applicable

month.

3. "Offending Customers" are Pipeline's customers that were assessed a penalty by

Pipeline in the applicable month.

37.6 The payment of an authorized overrun charge or overrun penalty shall not under any

circumstances be construed as giving Customer the right to take such overruns; nor shall

payment be construed as a substitute for any other remedies available to Pipeline or to

any other Customer against the Customer receiving the unauthorized overrun for failure to

adhere to its obligations under the provisions of the Rate Schedule, the Service

Agreement or the GT&C. Pipeline shall post on the Website the options available to

Customer to minimize or avoid the overrun service charges described in this Section 37.

Such posting shall include alternative services, if any, offered by Pipeline.