*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. 180 **Original Sheet No. 180 : Effective

(b) Negative Imbalances. Subject to Sections 19.3 and 19.4, if

Shipper has accrued a Negative Imbalance, such imbalance

shall be cashed out as follows:

(1) If the aggregate of the Net Monthly Imbalances for

all Shippers results in a Negative Imbalance, Shipper

shall pay Pipeline per Dt for Shipper’s Net Monthly

Imbalance at the following prices specified for each

stated percentage that Shipper’s deliveries exceed

its receipts; provided, however, in any event the

first 1,000 Dts shall be cashed out at 100% of the

Median Price.

Percentage of Excess

Deliveries Price

0 to 5% 100% of Median Price

>5 to 10% 110% of High Price

>10 to 15% 125% of High Price

>15 to 20% 145% of High Price

>20% 170% of High Price

For purposes of determining the tier at which an

imbalance will be cashed out, the price will apply

only to quantities within a tier. For example, if

there is a six percent (6%) imbalance, quantities

that comprise the first five percent (5%) of the

imbalance are priced at 100% of the Median Price, and

quantities comprising the remaining one percent (1%)

of the imbalance are priced at 110% of the High

Price.

In addition to all other charges in this Section

19.5(b)(1), for each Dt cashed out, Shipper shall pay

an amount equal to the average of the upstream

pipeline interruptible transportation charges,

including FRQ.

(2) If the aggregate of the Net Monthly Imbalances for

all Shippers results in a Positive Imbalance, Shipper

shall pay Pipeline per Dt at 100% of the Median

Price.