Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 02/28/2003, Docket: RP03-239-000, Status: Effective

Original Sheet No. 405 Original Sheet No. 405 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

Transporter shall make available electronically daily

Imbalance information which shall notify Shipper of

any Imbalance under a Service Agreement in the current

Service Month, based on the best information then

available to Transporter, including data (e.g.,

nominations) provided to Transporter by Shipper, its

Operator and/or Pool Manager, as applicable,

electronic measurement data (estimates or actuals),

charts and meter observations, etc. Transporter's

Monthly Imbalance statement for a given Service Month

shall be in the same format (i.e., electronic or

paper) as Shipper's transportation invoice, and shall

be rendered at the same time or prior to the

transportation invoice for such Service Month.

Inaccuracies in information will be taken into account

in the cash-out procedures, as provided in Section

5.7(c)(ii)(5). The provision of such information

shall not relieve Shipper of its obligations under

this Tariff to avoid, correct or eliminate actual

Imbalances.

(ii) Cash-Out: During a Service Month, Shipper shall have

the opportunity to eliminate Daily Imbalances incurred

within such Service Month under a Service Agreement by

Pooling Area on an in-kind basis pursuant to the

provisions of Section 5.5(f)(iii) of the General Terms

and Conditions. Transporter and Shipper shall

eliminate any quantities remaining after any netting

or trading by Shipper in accordance with Sections

5.7(c)(ii)(3) and (4) hereof (hereafter the "Net

Oversupplies Quantity", the "Net Undersupplies

Quantity", or generically, the "Net Imbalance

Quantity"), as follows. Shipper shall be charged and

shall pay, or shall be paid or receive a credit of, as

appropriate, an amount based on the applicable Daily

Index Price(s), pursuant to the table below: