Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 05/01/2003, Docket: RP03-352-000, Status: Effective

Original Sheet No. 239 Original Sheet No. 239 : Superseded

GENERAL TERMS AND CONDITIONS

9. SCHEDULING, CURTAILMENT AND IMBALANCES (Cont'd)

under Rate Schedule(s) TSS, STS, FTS, SFT, and/or FSS may be

subjected to daily balancing penalties by (1) exceeding any

of the production area or market area MDTQs or MDWQ, reduced

if necessary to reflect such items as capacity release, or

(2) depleting its available gas in storage. Any volumes

taken in excess of the production area or market area MDTQ's

or MDWQ shall be considered Unauthorized Capacity Overrun

and shall be subject to daily balancing penalties equal to

12 times the maximum monthly reservation rate for the

applicable area per Dth; provided, however, that a 3%

tolerance in excess of MDTQ shall be permitted. For any

Receiving Party who is also a Shipper under this paragraph,

any quantities taken in excess of MDQ at any delivery point

will be credited to any quantities taken in excess of that

party's MDTQ in total during the same day. Penalty revenues

resulting from MDTQ or MDWQ Unauthorized Capacity Overruns

will be credited to those Shippers who did not incur

Unauthorized Capacity Overrun penalties on that day.

Penalty revenue associated with MDTQ overruns will be

credited to Shippers who did not overrun their MDTQ on the

same respective day and penalty revenue associated with MDWQ

overruns will be credited to Shippers who did not overrun

their MDWQ on the same respective day. Credits will be pro

rata based on MDTQ and MDWQ, respectively. Payment of a

penalty under this paragraph shall not entitle Shipper to

any future increased MDTQ or MDWQ.

Storage withdrawals made after a Shipper's storage

account(s) is/are depleted shall be subject to daily

balancing penalties equal to $15 per Dth. Daily penalty

revenue related to storage depletion will be credited to

those Shippers whose storage account was not depleted on

that day.