Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

Effective Date: 04/01/2004, Docket: RP96-200-118, Status: Effective

First Revised Sheet No. 421 First Revised Sheet No. 421 : Effective

Superseding: Original Sheet No. 421

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

as soon as possible or Transporter's rights to effect

reductions in Imbalances and to limit receipts and/or

deliveries as otherwise provided in these General Terms and

Conditions, including, but not limited to, Sections 5.7(a)

and (b) above. Without regard to the nature of the service

involved or the priority attached to the service,

Transporter shall have no obligation, nor any liability for

its failure, to deliver for Shipper's account on any Day

more Gas than was received and scheduled for delivery by

Transporter for Shipper under its Service Agreement.

(e) Final Balancing: Notwithstanding anything contained herein,

Shipper shall cash-out Imbalances existing under a Service

Agreement following the expiration or termination of such

Agreement in the manner prescribed in Section 5.7(c)(ii) (1)

above.

(f) Agents: If a Shipper wants to designate an agent to manage

its balancing activities, the parties may do so by entering

into an Agency/Asset Manager Authorization Agreement in the

form set forth on Sheet No. 788 of this Tariff. Under such

an arrangement, the Shipper may authorize the agent to ,

e.g., submit nominations, receive and provide notices,

minimize/correct Imbalances, net and/or trade imbalance

quantities, receive and/or resolve cash-out invoices.

5.8 Unauthorized Gas. Unauthorized Gas quantities are: any and all

quantities delivered into Transporter's system for service at a

Receipt Point for which a nomination in accordance with

Section 5.2 of these General Terms and Conditions is not received

or, to the extent that a valid and confirmed nomination is

received for a Receipt Point, those quantities delivered into

Transporter's system for service which are in excess of one

hundred fifty percent (150%) of the valid and confirmed

nomination(s) and which are in excess of 500 Dth/D. Unauthorized

Gas quantities may be rejected, or if accepted, suspended by

Transporter.