Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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Effective Date: 05/01/2010, Docket: RP10-514-000, Status: Effective

Fourth Revised Sheet No. 251 Fourth Revised Sheet No. 251

Superseding: Third Revised Sheet No. 251

GENERAL TERMS AND CONDITIONS

10. OPERATIONAL FLOW ORDERS (Cont'd)

(f) Southern Star may direct shipper under Rate Schedules TSS, STS, FSS, ISS,

ITS, SFT and FTS or Point Operators to increase receipts of flowing gas to

maintain a North/South system balance between the Northern and Southern

portions of Southern Star's system.

(g) Southern Star may issue any other OFO it deems necessary to protect the

integrity of its system. On any occasion when Southern Star issues an OFO

under this subsection, Southern Star will send to the Commission a detailed

description of the situation which necessitated the issuance of that

particular OFO.

10.3 Failure to Comply with Operational Flow Orders

If Shipper or Point Operator fails to comply with the terms of an OFO for reasons

other than Southern Star's negligence, misconduct, or inaccurate information

provided by Southern Star, such Shipper or Point Operator shall be assessed a

penalty as set forth below. For Emergency OFOs, the penalty for failure to comply

with the terms of an OFO shall be the greater of $10.00 or 5 times the average Gas

Daily Index for Southern Star for the days of noncompliance for each Dth by which

Shipper deviated from the requirements of the OFO. For Standard OFOs, the penalty

for failure to comply with the terms of an OFO shall be the greater of $5.00 or 2.5

times the average Gas Daily Index for Southern Star for the days of noncompliance

for each Dth by which Shipper deviated from the requirements of the OFO. The

quantity of gas subject to OFO penalties shall be determined pursuant to Section

10.4.

Southern Star will not double charge an OFO penalty to the same party for the same

violation. If the Point Operator does not have a transportation service agreement

with Southern Star, the nomination Confirmation shall serve as a contract between

Southern Star and the Point Operator for purposes of this Section 10.

Payments received by Southern Star for OFO penalties shall be credited to Shippers

and point operators pursuant to Section 10.4 (c) and (h).

Southern Star will file a report and a refund plan no later than December 1 of each

year for payments received for the 12 months ended September 30 of that year

resulting from penalties assessed pursuant to this Section 10. Southern Star will

make refunds to Shippers within 10 days of receiving a final order accepting such

refund plan.

Shippers and Point Operators will be exempt from imbalance penalties associated

with OFO compliance and will have an additional 30 days to correct OFO related

imbalances.