Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 03/01/2006, Docket: RP06-188-000, Status: Effective

Sixth Revised Sheet No. 244 Sixth Revised Sheet No. 244 : Effective

Superseding: Substitute Fifth Revised Sheet No. 244

GENERAL TERMS AND CONDITIONS

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

(iii) adjusting nominations for the remainder of the current

month, or

(iv) cashing out imbalances in excess of the tolerance

level, as defined in (b) below, at 100% of the index

price applicable to Southern Star as published in the

first issue of Inside FERC's Gas Market Report for the

month in which the imbalance occurred. If Inside

FERC's Gas Market Report does not publish an index

price for Southern Star, then the index price shall be

the average of the first of the month index prices as

published in the first issue of Inside FERC's Gas

Market Report applicable to those pipelines

categorized as Oklahoma region pipelines in Platts'

Gas Daily.

(b) Net monthly imbalances which are not resolved by the end of

the first month following the month in which the imbalance

occurred and which exceed the greater of (1) 1,000 Dth, or

(2) plus or minus 5% of actual deliveries to the Shipper

shall be subject to a balancing fee equal to the maximum

rate under Rate Schedule ISS, plus associated storage fuel

and loss. Shippers remain responsible for actual

elimination of the imbalance, by using one of the four

methods set out in 9.7(a)(i) - (iv) above, notwithstanding

the payment of the balancing fee. If a Shipper is unable to

resolve a net imbalance due directly to Southern Star's

negligence or willful acts or omissions, the fee provided by

this paragraph shall not apply.

(c) Net monthly imbalances which are not resolved by the end of

the second month following the month in which the imbalance

occurred and which exceed the tolerance specified in the

preceding paragraph shall be cashed-out according to the

schedule set forth in (i) and (ii) below. Spot price refers

to the index price as defined in (a)(iv) above.

(i) Receipts in excess of deliveries shall be purchased by

Southern Star from the Shipper at the following

prices:

Percent by which receipts

exceed deliveries Purchase Price

Up to 5% or 1,000 Dth N/A

(5% but less than 10% .7 x spot price

(10% but less than 15% .6 x spot price

(15% .5 x spot price