Central New York Oil And Gas Company, LLC

Original Volume No. 1

Effective Date: 12/01/2001, Docket: CP00- 61-002, Status: Effective

Substitute Original Sheet No. 108 Substitute Original Sheet No. 108 : Effective

GENERAL TERMS AND CONDITIONS (continued)

16.8 Seller's Scheduling Authority. Seller shall

have the right to act as a scheduling agent for a

Customer's account if (a) the Customer refuses to

schedule Gas injections or withdrawals as

specified by an OFO issued pursuant to Section

16.4(a); or (b) if Seller requires additional

quantities in less than the twenty-four (24) hour

notice period normally required for an OFO, and

the Customer has refused verbal request to

schedule the required quantity of Gas.

17. OFF-SYSTEM CAPACITY.

Seller may, from time to time, acquire transportation

and/or storage capacity on a third-party pipeline

system. Seller states that it will only provide

transportation and storage services for others using

such capacity pursuant to its open access FERC Gas

Tariff subject to its rates approved by the Federal

Energy Regulatory Commission and the "shipper must hold

title" policy is waived to permit such use.

18. PENALTY REVENUE CREDITING.

Each Month, Seller will determine the amount of penalty

revenues it has received for the Month, including any OFO

damages paid by Customers pursuant to Section 16 of these

General Terms and Conditions and the value of Gas retained

pursuant to Rate Schedule FSS Sections 2(f) and 8 and Rate

Schedule ISS Section 7, in each case, net of costs. Seller

will credit the net amount of penalty revenues to those

Customers under Rate Schedule FSS and Rate Schedule ISS that

were not billed penalties during the applicable Month ("Non-

Offending Shippers"). Each Non-Offending Shipper's credit

shall be based on the ratio of the actual revenue collected

from the Non-Offending Shipper for the Month divided by the

actual revenue collected from all Non-Offending Shippers for

the Month. Each Non-Offending Shipper's credit shall be

paid as a billing adjustment, including documentation to the

billing of charges for service during the following Month.