Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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

Second Revised Sheet No. 264 Second Revised Sheet No. 264 : Effective

Superseding: Substitute First Revised Sheet No. 264

GENERAL TERMS AND CONDITIONS

11. FIRM CAPACITY REASSIGNMENT (Cont'd)

(d) Balancing fees charged the Replacement Shipper when the FTS

component is released under a TSS contract.

Credits for gross revenues billed less the revenues calculated in

(a), (b), (c) and (d) above shall be given on invoices to

Releasing Shippers for the same month the release is effective.

The Service Agreement of the Releasing Shipper remains in full

force and effect, and the Releasing Shipper will be liable for the

amount of the reservation charge and surcharges if the Replacement

Shipper fails to pay the reservation charge and surcharges. The

Releasing Shipper is also liable for interest on the amount of

reservation charges and surcharges not paid by the Replacement

Shipper.

The Replacement or Prearranged Shipper shall be liable to Southern

Star for all charges it incurs.

The Replacement Shipper is subject to the same obligations and

entitled to the same rights enjoyed by the Releasing Shipper,

including the use of pools.

11.8 Permanent Releases of Capacity

Where there is a permanent release of capacity, such release is at

the same rate paid by the Releasing Shipper and for the remaining

term of the service agreement, and the Replacement Shipper meets

Southern Star's creditworthiness standards, Southern Star will

release the Releasing Shipper from liability for the permanently

released portion of the contract.

12. INTERRUPTIBLE CAPACITY

Southern Star will post on its electronic bulletin board on a

daily basis all transmission capacity not being utilized and

storage capacity available. Such capacity will be available for

interruptible service under the terms and conditions of Rate

Schedule ITS or ISS. Any party wishing to request interruptible

capacity shall follow the procedure set forth in Section 8.1.