Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-189-000, Status: Effective

Third Revised Sheet No. 266 Third Revised Sheet No. 266

Superseding: Second Revised Sheet No. 266

GENERAL TERMS AND CONDITIONS

13. FUEL AND LOSS REIMBURSEMENT

Shippers shall reimburse Southern Star for fuel and loss (fuel and loss)

in kind. A separate fuel and loss reimbursement percentage shall be

stated for the Production Area, the Market Area and for storage.

13.1 Filing of Transmission System Fuel and Loss Reimbursement

Percentages

Southern Star shall file revised fuel and loss reimbursement

percentages each year based on actuals for the preceding twelve

month period ended December 31. Any difference between actual

fuel and loss in the prior twelve month period and the quantity

retained in kind hereunder for such twelve month period shall be

included in the calculation of revised fuel and loss reimbursement

percentages for the following year. Such annual filing shall be

made no later than March 1 to be effective April 1. The filing

made by March 1, 2011 will include 15 months of data due to

changing the twelve-month ending period from September 30 to

December 31 in 2010.

13.2 Method of Calculation of Transmission System Fuel and Loss

Actual fuel consumed at each compressor station or other fuel

consuming facility is measured and is assigned to the area

(Production/Market/Storage) where such facility is located.

Transmission system losses are calculated by (1) subtracting

actual deliveries off the system and actual fuel consumed from

actual receipts on the system; and (2) subtracting net storage

injections or adding net storage withdrawals to the result

obtained in (1). Such transmission system losses are then