Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 07/10/2009, Docket: RP09-758-000, Status: Effective

Fourth Revised Sheet No. 243 Fourth Revised Sheet No. 243

Superseding: Third Revised Sheet No. 243

GENERAL TERMS AND CONDITIONS

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

9.7 Resolution of Monthly Imbalances

This Section 9.7 is applicable to Shippers under Rate Schedules

FTS, SFT and ITS. This Section also applies to Shippers under

Rate Schedules TSS and STS to the extent net injections result in

Shipper's storage inventory balance exceeding the MSQ or to the

extent Shipper's storage inventory balance is less than the amount

of net withdrawals.

An imbalance results when a Shipper delivers or causes delivery to

Southern Star at the receipt point(s) of a quantity of gas which,

after appropriate reduction for fuel and loss, is less than or

greater than the quantity of gas taken from Southern Star at the

delivery point(s). Shippers shall maintain thermal balancing of

receipts and deliveries on a daily basis to the maximum extent

possible. Any monthly imbalances which do remain, however, shall

be subject to the provisions of this Section 9.7.

(a) All transportation agreements with each Shipper within the

same area (production/market) will be combined for purposes

of determining whether a net monthly imbalance exists. If a

Shipper utilizes more than one agreement to transport the

same gas sequentially within the same area, Southern Star

will utilize original receipts and ultimate deliveries for

purposes of determining the monthly imbalance. An imbalance

statement shall be generated for each Shipper at the same

time or prior to the generation of the transportation

invoice, which will state their level of imbalance for the

preceding calendar month. Shippers may elect to resolve

their imbalances by the end of the calendar month following

the month in which the imbalance occurs by any of the

following means:

(i) imbalance trading among Shippers in the same area,

(ii) treating the imbalance as if it had been injected into

or withdrawn from the Shipper's storage account to the

extent Shipper has storage capacity available or

Shipper's storage inventory is sufficient to cover the

imbalance (applies only to those Shippers who also

have storage agreements with Southern Star),