Carolina Gas Transmission Corporation

Original Volume No. 1

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

Original Sheet No. 179 Original Sheet No. 179 : Effective

19. RESOLUTION OF IMBALANCES

19.1 Shipper’s imbalance for a Gas Day shall be the difference between

the allocated receipts and the allocated deliveries adjusted

upward for FRQ.

19.2 All imbalances accrued by Shipper under its Service Agreement(s)

and any Pooling Agreement(s) shall be resolved on a monthly basis

under the provisions herein.

19.3 Netting. For each Month, all of a Shipper’s cumulative

imbalances will be netted among its Pooling Agreement(s) and

Service Agreement(s). When an agent is authorized to resolve

imbalances on Pooling Agreements and Service Agreements of

multiple Shippers, all cumulative imbalances on such Pooling

Agreements and Service Agreements will be netted. If such agent

defaults on any imbalance payment, each Shipper will be

responsible for resolving the imbalances on its Pooling

Agreement(s) and Service Agreement(s).

19.4 Trading. Shippers may trade: (i) the previous Month’s netted

imbalances on their Service Agreements and Pooling Agreements;

and (ii) the previous Month’s imbalances on applicable OBAs.

Trading will be allowed when the resulting trade will reduce the

imbalances for each party involved in the trade. Imbalance

trades shall be made on the Internet Website from the 1st day of

the Month until the end of the 17th Business Day of the Month.

19.5 Cashout. If Shipper has an imbalance remaining after the close

of the trading period, such imbalance shall be cashed out under

the cashout provisions in this Section 19.5.

(a) Calculation of Imbalances.

(1) Pipeline will calculate the imbalance that exists

between the quantities of gas allocated to Shipper

for its account at the Receipt Points during that

Month and the quantities of gas allocated to Shipper

for its account at Delivery Points during that Month.

The Net Monthly Imbalance will be derived for the

purposes of the following calculations.

(2) Shipper’s net imbalance percentage for the Month

shall equal Shipper’s Net Monthly Imbalance divided

by the lesser of the actual Dts of gas received or

delivered under all Shipper’s agreements during the

Month.