Southern Star Central Gas Pipeline, Inc.

Original Volume No. 1

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

Second Revised Sheet No. 267 Second Revised Sheet No. 267

Superseding: First Revised Sheet No. 267

GENERAL TERMS AND CONDITIONS

13. FUEL AND LOSS REIMBURSEMENT (Cont'd)

allocated to the Production Area and the Market Area based on

quantities received in each area, including volumes received into

the Market Area at the Production Area/Market Area interface.

Actual fuel consumed at each compressor station or other fuel

consuming facility attributable to transmission operations is

measured.

Over or under recovery of fuel and loss in each area is calculated

by comparing the actual fuel and loss incurred during the

preceding twelve-month period (January through December - except

for the 2011 filing which will include fifteen months due to

changing the twelve-month ending period from September 30 to

December 31 in 2010) to the quantity of gas retained under the

fuel and loss reimbursement percentage which was in effect during

each month of such period. The quantity retained is calculated

using the actual fuel and loss reimbursement percentage before

adjustment for under or over recoveries during the prior period.

13.3 Filing of Storage Fuel and Loss Reimbursement Percentages

Southern Star shall file revised storage fuel and loss

reimbursement percentages each year based on actuals for the

preceding twelve-month period ended December 31 (except for the

2011 filing which will include fifteen months due to changing the

twelve-month ending period from September 30 to December 31 in

2010). Such annual filing shall be made no later than March 1 to

be effective April 1.

13.4 Method of Calculation of Storage Fuel and Loss

The storage fuel reimbursement percentage shall have two

components: a current charge and a surcharge.

Actual fuel consumed at each storage compressor station or other

storage fuel consuming facility attributable to storage operations

is measured.