Carolina Gas Transmission Corporation

Original Volume No. 1

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Effective Date: 11/01/2006, Docket: CP06- 71-001, Status: Effective

Original Sheet No. 111 Original Sheet No. 111 : Effective

“Net Monthly Imbalance” shall mean that amount in Dts derived from the

combination of all imbalances (Positive Imbalances and Negative

Imbalances) accumulated by Shipper in a Month under each of its

transportation, pooling, and OBA agreements, or any such agreements

under which Shipper has been appointed to be the imbalance agent with

authority to resolve imbalances under GT&Cs Section 19.

“Net Present Value” (“NPV”) shall mean the discounted cash flow of

incremental revenues in excess of incremental costs using the discount

rate specified in a capacity offer posted on the Internet Website.

“NGA” shall mean the 1938 Natural Gas Act, as amended.

“Operational Balancing Agreement” (“OBA”) shall mean an agreement

between Pipeline and an interconnecting party that specifies procedures

to manage operating variances at an interconnection.

“OBA Party” shall mean any party to an OBA with Pipeline.

“Operational Flow Order” (“OFO”) shall mean an order issued by Pipeline

under GT&Cs Section 15 to alleviate conditions, among other things,

that threaten the safe operations or integrity of Pipeline’s system, or

the maintenance of operations required to provide efficient and

reliable firm service. Whenever Pipeline experiences those conditions,

any pertinent order shall be deemed to be an OFO, whether or not so

denominated.

“Operator Provided Value” (“OPV”) PDA shall mean the predetermined

allocation methodology used to allocate gas flow among scheduled line

item nominations at a Delivery or Receipt Point where a quantity is

provided for each scheduled line item nomination such that the sum of

the quantities equals the measured quantities at the point.

“PDA” shall mean a predetermined allocation provided to Pipeline by a

Delivery Point Operator taking gas quantities from Pipeline’s system

that is in accordance with Pipeline’s nomination and ranking deadlines.

“Percentage PDA” shall mean the predetermined allocation methodology

used to allocate gas flow among scheduled line item nominations at a

Delivery or Receipt Point where the allocation is derived by

multiplying the difference between the measured quantities and the

total scheduled quantities at a location by the percentage provided for

each line item and adding this to the appropriate scheduled line item

nomination.