Carolina Gas Transmission Corporation

Original Volume No. 1

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

Original Sheet No. 199 Original Sheet No. 199 : Effective

27. PENALTY REVENUE SHARING

27.1 For each Month, Pipeline shall determine firm Shippers that have

not incurred in that Month any of the penalties set forth in

GT&Cs Sections 15.3. Such Shippers will be non-offending

Shippers eligible to share in penalty revenue collected for that

Month, subject to this Section 27.

27.2 Non-offending Shippers for each Month will share in all penalty

revenue, net of costs, collected for that Month based on each

respective non-offending Shipper’s actual fixed cost contribution

as a percentage of the total fixed cost contribution of all non-

offending Shippers (exclusive of the fixed cost contribution

pertaining to any service purchased by Pipeline from third

parties) for that Month.

27.3 Not later than the invoice for August service, Pipeline shall

credit to such non-offending Shippers all penalty revenue

collected, net of costs, as of May 31 each year. Only costs

incurred by Pipeline as a direct result of an offending Shipper’s

failure to abide by an OFO, or other misconduct in transactions

giving rise to the penalty amounts, shall be deducted from the

penalty revenue.

27.4 By September 1 each year, Pipeline shall file with the Commission

a report containing the penalty revenue credits made under

Section 27.3.