Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 241 Original Sheet No. 241 : Superseded

GENERAL TERMS AND CONDITIONS

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

(g) No later than November 1, 1997, Southern Star's EBB will

contain volume to Dth conversion data for all receipt and

delivery points covered by EFM and which may be subject to

penalties under paragraph 9.6(d). Southern Star will waive

the portion of any penalty calculated under paragraph 9.6(d)

which is attributable to a difference between the actual Btu

content of gas received or delivered and the posted Btu

content for that receipt of delivery point. No penalty will

be imposed on any Point Operator relating to variations in

heat content of gas from an assumed standard of 1,000 Btu

until November 1, 1997.

(h) Payments received by Southern Star for daily balancing

penalties associated with Unauthorized Under Receipts shall

be credited back to receipt point operators at points

equipped with electronic flow measurement who did not incur

any Under Receipts at such points during the period of daily

balancing for which penalties were received. Payments

received by Southern Star for daily balancing penalties

associated with Unauthorized Overdeliveries shall be

credited back to delivery point operators at points equipped

with electronic flow measurement who did not incur any

Overdeliveries at such point during the period of daily

balancing for which penalties were received. Such credits

shall be allocated based on each operator's pro rata share

of the total receipt or delivery point measured volumes at

these points for the period of daily balancing in which

penalties were incurred.

(i) The payment of a daily balancing penalty shall not under any

circumstances be considered as a substitute for any other

remedies available to Southern Star against the offending

Delivering or Receiving Party, including, but not limited

to, suspension or reduction of deliveries until

Overdeliveries or Under Receipts are made up.

(j) Southern Star will file a report and a refund plan no later

than December 1, of each year for payment received for the

12 months ended September 30 of that year resulting from

penalties assessed pursuant to this Section 9.6. Southern

Star will make refunds to Shippers within 10 days of

receiving a final order accepting such refund plan.