Algonquin Gas Transmission, LLC

Fifth Revised Volume No. 1

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Effective Date: 11/30/2009, Docket: RP10-77-000, Status: Effective

First Revised Sheet No. 589 First Revised Sheet No. 589

Superseding: Original Sheet No. 589

GENERAL TERMS AND CONDITIONS

(continued)

31. UNAUTHORIZED CONTRACT OVERRUN GAS (continued)

Any penalty revenue collected by Algonquin pursuant to this Section 31.2 will be

credited to those firm and interruptible Customers that did not incur penalties

pursuant to this Section 31.2 in the Month for which penalty revenues were received

("Non-offending Customers"), based on the ratio of the Reservation and Usage Charges

paid during that Month by each Non-offending Customer to the total amount of such

charges paid during that Month by all Non-offending Customers. An operator that has

executed an Operational Balancing Agreement and a transportation service agreement with

Algonquin shall be eligible to receive penalty revenue credits as a Non-offending

Customer for any Month in which the operator was not liable for penalties pursuant to

this Section 31.2 under its own transportation service agreement(s). Such credits

shall be calculated for each Month of the twelve (12) month period ending July 31 of

each year and will be included on the Non-offending Customers' invoice for the Month

following the date of the final Commission order approving Algonquin's penalty

disbursement report; provided, however, that Algonquin will calculate and include such

credits on Non-offending Customers' invoices for a period shorter than twelve months in

the event and to the extent that the total accumulated amount of penalty revenue

collected pursuant to this Section 31.2 by Algonquin as of the end of any Month exceeds

$1,000,000. Algonquin will file a penalty disbursement report within sixty days of

July 31 or sixty days after the end of the Month in which the revenue collected exceeds

$1,000,000. Any penalty revenue credited to Non-offending Customers pursuant to this

section shall include interest calculated in accordance with Section 154.501(d) of the

Commission's regulations.

31.3 Waiver of Penalty. The penalty payment provided in Section 31.2 above shall not apply:

a) When the Unauthorized Contract Overrun Gas in any Hour under Section 31.1(a)

above does not exceed 2 Dth or 2% of Customer's MHTQ, whichever is greater, and

b) When the Unauthorized Contract Overrun Gas on any Day under Section 31.1(b) above

does not exceed 50 Dth or 2% of Customer's MDTQ, whichever is greater.

31.4 Reservation; Other Remedies. This Section 31, or the payment of a penalty for

Unauthorized Contract Overrun Gas hereunder, shall under no circumstances be considered

as giving Customer any right to take Unauthorized Contract Overrun Gas or be considered

as a substitute for any other remedy available to Algonquin against the offending

Customer for failure to respect its obligation to stay within its contract

entitlements. Algonquin expressly reserves the right, when, in Algonquin's reasonable

judgment, such remedy is necessary to protect service to Algonquin's other Customers,

to shed the load of the offending Customer which is not staying within its contract

entitlements by closing valves at Points of Delivery on a particular Day after such

offending Customer has taken the total quantity of gas it is entitled to take on such

Day from Algonquin, or to take such other action as Algonquin deems necessary or

appropriate to protect deliveries to other Customers.

31.5 Notice of Unauthorized Overruns. Algonquin shall post notice on the LINK® System and

its Internet Web Site when conditions triggering application of this Section 31 have

occurred. Such notice shall specify that the posting is being made pursuant to the

provisions of Section 31 of the General Terms and Conditions.