Columbia Gas Transmission LLC

Third Revised Volume No. 1

Effective Date: 03/03/2009, Docket: RP09-340-000, Status: Effective

Original Sheet No. 135 Original Sheet No. 135

ISS RATE SCHEDULE

INTERRUPTIBLE STORAGE SERVICE (Cont'd)

7. PENALTIES

(a) If Shipper fails to comply with an interruption order issued by Transporter pursuant to this

Rate Schedule or Section 16 (Interruptions of Service) of the General Terms and Conditions and thereby causes

injections or withdrawals in excess of 103 percent of the lowered MDIQ or scheduled withdrawal quantity set by

Transporter's interruption order (Lowered Quantity), Shipper shall be assessed and pay a penalty of $10.00 per

Dth for quantities taken or tendered in excess of 103 percent of that Lowered Quantity.

(b) If Shipper fails to comply with an operational flow order issued by Transporter pursuant to

Section 17 (Operational Flow Orders) of the General Terms and Conditions, a penalty of $5.00 per Dth per day

shall be assessed to Shipper for all quantities in violation of that operational flow order.

withdraw all of Shipper's ISQ by Shipper's Final Withdrawal Date, any such quantities not withdrawn shall be

forfeited automatically by Shipper to Transporter free and clear of all liens and encumbrances. Transporter

shall post such forfeited quantities on its EBB as gas available for sale to the highest bidder within a 24

hour notice period. Such posting may provide as a condition of sale that such gas be withdrawn from storage

within a period of time to be specified in the notice. Upon receipt of payment, Transporter shall treat the

forfeited gas proceeds as Penalty Revenues as defined in Section 19.6 of the General Terms and Conditions.

(d) All penalties and charges assessed under this Section shall be assessed and paid in addition to

all applicable rates and charges under this Rate Schedule, including any overrun charges.

(e) If Shipper seeks to avoid any penalty provided for in this Section on the ground that such

charge was incurred because of a force majeure event as defined in Section 15 (Force Majeure) of the General

Terms and Conditions, Shipper shall document such force majeure event to Transporter. Transporter shall waive

penalties to the extent the imbalance was caused by a bona fide force majeure event as defined in said Section

15.

(f) Transporter may waive its right to collect all or any portion of any penalties assessed against

Shipper or its right to retain all or any portion of gas, provided that any such waiver is granted in a

nondiscriminatory manner.

8. GENERAL TERMS AND CONDITIONS

All of the General Terms and Conditions are applicable to this Rate Schedule and are hereby made a part

hereof, with the exception of Sections 4, 11, 12, 14, 19.1, 19.2, 19.4, 33, 34, 36, and 38 through 46.