Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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

Fourth Revised Sheet No. 245 Fourth Revised Sheet No. 245 : Effective

Superseding: Substitute Third Revised Sheet No. 245

GENERAL TERMS AND CONDITIONS

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

(ii) Deliveries in excess of receipts shall be sold by

Southern Star to the Shipper at the following prices:

Percent by which deliveries

exceed receipts Sales Price

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

(5% but less than 10% 1.3 x spot price

(10% but less than 15% 1.4 x spot price

(15% 1.5 x spot price

(d) During each twelve month period beginning on the effective

date of this Section 9, Southern Star shall refund any net

revenue (sales revenue less purchase cost) received from

operation of paragraph (c) to all Shippers on a pro-rata

basis based on quantity delivered under rate schedules

applicable to this Section 9.7 to each Shipper during such

twelve month period. This refund shall be net of costs

Southern Star incurs for purchases made for operational

purposes. If Southern Star incurs a net cost during such

twelve month period, the amount will be deferred and offset

against revenue received in the next twelve month period.

Carrying costs shall be calculated on the net balance each

month (either net revenue or net cost) utilizing the rate

set forth in Section 154.501 of the Commission's

regulations. Southern Star will file a report and, if

necessary, a refund plan no later than December 1 of each

year of net cash out activity for the 12 months ended

September 30 of that year. Southern Star will make refunds

to Shippers within 10 days of a final order accepting such

refund plan.

(e) In the event a monthly imbalance exceeding the tolerance set

forth in Sections 9.7(b) and 9.7(c) results directly from

(1) compliance with an operational flow order issued by

Southern Star pursuant to Section 10, (2) inaccurate

information provided by Southern Star, or (3) a force

majeure event, such Shipper shall be allowed an additional

month to resolve such imbalances.

(f) No imbalance penalty will be imposed when a prior period

adjustment applied to the current period causes or increases

a current month penalty.