Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 240 Original Sheet No. 240 : Superseded

GENERAL TERMS AND CONDITIONS

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

(d) For deliveries taken by any Receiving Party that are greater

than 103% of the sum of confirmed delivery nominations plus

the TSS/STS MDQ (Overdeliveries), or for receipts delivered

by any Delivering Party that are less than 95% of confirmed

receipt nominations (Under Receipts), on any day during a

period of daily balancing, said Receiving or Delivering

Party shall pay to Southern Star a balancing penalty for

each Dth of Overdeliveries or Under Receipts as follows:

(i) the greater of $10 or 5 times the average Gas Daily

Index for Southern Star for each day for which daily

balancing is in effect for each Dth of Overdeliveries

in excess of 3% through 10% of authorized delivery

levels or Under Receipts in excess of 5% through 10%

of confirmed nominations;

(ii) the greater of $20 or 10 times the average Gas Daily

Index for Southern Star for each day for which daily

balancing is in effect for each Dth of Overdeliveries

or Under Receipts in excess of 10% of authorized

delivery levels (for Overdeliveries) or confirmed

nominations (for Under Receipts);

(e) For each receipt or delivery point operator, Southern Star

will aggregate receipts and deliveries which are on the same

line segment and which are otherwise subject to this Article

9.7 for purposes of determining daily balancing penalties.

Each receipt or delivery point is associated with a

particular line segment on Southern Star's Master Receipt

and Delivery Point Lists.

(f) Southern Star shall have the right on a nondiscriminatory

basis to restrict the hourly takes of gas by Receiving

Parties during system-wide periods of daily balancing to

1/16 times the sum of confirmed delivery nominations plus

the TSS/STS MDQ at any delivery point.