Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP03-356-001, Status: Effective

First Revised Sheet No. 251A First Revised Sheet No. 251A : Effective

GENERAL TERMS AND CONDITIONS

10. OPERATIONAL FLOW ORDERS (Cont'd)

10.4 Unauthorized Overdeliveries, Under Receipts, and Penalties

(a) Overdeliveries - During any OFO period, if any Receiving

Party takes a quantity of gas from any Delivery Point

where at least 97% of volumes are measured by electronic

flow measurement equipment (EFM) in excess of the quantity

authorized (the quantity authorized is equal to the

quantity scheduled by Southern Star and confirmed by the

Receiving Party for the account of all Shippers delivering

gas at that location plus the MDQ(s) for that Delivery

Point under Rate Schedules TSS and STS which are not

subject to capacity release), such excess quantities taken

shall be considered Unauthorized Overdeliveries and shall

be subject to OFO penalties as provided in (d) below.

Actual quantity taken shall be determined by reference to

recorded EFM data. Penalties will be levied by Southern

Star against the Receiving Party who controls the

facilities into which gas is delivered. If the Receiving

Party does not have a transportation service agreement

with Southern Star, the nomination Confirmation shall

serve as a contract between Southern Star and the

Receiving Party for purposes of paragraph (d) below.

(b) Under Receipts - During any OFO period, if any Delivering

Party delivers a quantity of gas into Southern Star's

system at any Receipt Point, where at least 97% of volumes

are measured by electronic flow measurement equipment

(EFM), less than the nominations confirmed at such receipt

point by such Delivering Party, the difference between the

confirmed nomination and the actual quantity delivered

shall be considered Unauthorized Under Receipts and shall

be subject to OFO penalties as provided in (d) below.

Actual quantity delivered shall be determined by reference

to recorded EFM data. Penalties will be levied by

Southern Star against the Delivering Party who controls

the facilities from which gas is delivered. If the

Delivering Party does not have a transportation service

agreement with Southern Star, the nomination Confirmation

shall serve as a contract between Southern Star and the

Delivering Party for purposes of paragraph (d) below.