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. 161 Original Sheet No. 161 : Effective

(e) OFO Penalties.

(1) To the extent Pipeline issues an OFO and Shipper does

not comply with such order, Pipeline will assess, and

Shipper will be obligated to pay:

(i) for violation of a Standard OFO, $5.00 per Dt

plus the highest Daily Gas Index Price for the

Gas Day of, the Gas Day preceding, or the Gas

Day following receipt or delivery; and,

(ii) for violation of an Emergency Response OFO,

$20.00 per Dt plus the highest Daily Gas Index

Price for the Gas Day of, the Gas Day

preceding, or the Gas Day following receipt or

delivery.

(2) Penalties will be assessed on each Dt of gas received

into or delivered out of Pipeline’s system when such

receipts or deliveries are not in compliance with an

OFO. Multiple OFO penalties will not be assessed on

the same penalty quantities.

(3) All OFO penalties collected by Pipeline shall be

accounted for as part of Pipeline’s penalty revenue

sharing under GT&Cs Section 27.

(4) The payment of a penalty under this Section 15.3

shall under no circumstances be considered as giving

Shipper any right to violate OFOs, nor shall such

payment be considered as a substitute for any other

remedy available to Pipeline or any other Shipper

against the offending Shipper for failure to comply

with an OFO.