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. 162 Original Sheet No. 162 : Effective

16. CURTAILMENT OF SCHEDULED QUANTITIES

16.1 To preserve system integrity and when reductions to the scheduled

quantities cannot be made through a nomination cycle pursuant to

GT&Cs Sections 11 and 12, Pipeline may curtail transportation

services, including firm services, at a specific Receipt Point,

Delivery Point, or portion of Pipeline’s system. Nothing in this

Section 16 shall preclude Pipeline from issuing an OFO under

GT&Cs Section 15.3 addressing the same quantities subject to a

curtailment.

16.2 In the event service is curtailed, Pipeline shall reduce each

Shipper’s scheduled service in the following order:

(a) first, pro rata based on scheduled quantities to

interruptible transportation service that is scheduled for

the purpose of resolving a prior imbalance in receipts or

deliveries;

(b) then, Shippers under Rate Schedule PAL ranked starting with

the lowest average unit rate paid;

(c) then, interruptible transportation Shippers, ranked

starting with the lowest rate. Pipeline shall allocate

capacity among Shippers paying the same rate pro rata on

the basis of scheduled quantities; provided, however,

Shippers paying a Negotiated Rate that exceeds the maximum

rate shall be considered for purposes of this Section

16.2(c) to be paying the maximum rate;

(d) then, pro rata based on MDTQ to firm transportation service

scheduled for the purpose of resolving a prior imbalance in

receipts or deliveries up to but not in excess of Shipper’s

MDTQ; and

(e) then, pro rata based on MDTQ to Shippers under a firm

transportation Service Agreement.

16.3 Notice of Curtailment.

(a) Notice by Pipeline. Pipeline will provide notice of

curtailment of scheduled quantities to affected Shippers

and Point Operators.

(b) Notice by Shipper. Shipper shall have the sole

responsibility to inform its end-users, suppliers, other

pipelines, and all others appropriately involved in, or

reasonably requiring notice of, any curtailments or

interruptions under this Section 16.