Columbia Gas Transmission LLC

Third Revised Volume No. 1

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

Original Sheet No. 156 Original Sheet No. 156

FBS RATE SCHEDULE

FIRM BALANCING SERVICE (Cont'd)

(c) The charges and surcharges described in this Rate Schedule are subject to adjustment in

accordance with the procedures set forth in the General Terms and Conditions.

(d) From the quantities delivered into storage for Shipper, Transporter shall retain the Storage

Gas Loss Retainage Percentage of gas specified in the currently effective Sheet No. 37. That percentage shall

be subject to adjustment in accordance with Section 35 (Retainage Adjustment Mechanism) of the General Terms

and Conditions.

(e) Shipper shall remain responsible for all property or other taxes associated with the quantities

held for Shipper in storage under this Rate Schedule.

(f) The Reservation Charge shall apply as of the date service is deemed to commence by the terms of

Shipper's FBS Service Agreement.

(g) Transporter shall be responsible for any loss, cost, or expense arising from any loss of

Shipper's gas in Transporter's storage that results from Transporter's negligence or failure to exercise due

diligence. Notwithstanding the provisions in Section 22 (Possession of Gas) of the General Terms and

Conditions, Shipper shall be responsible for obtaining its own insurance for any gas in storage, and shall

hold Transporter harmless from any loss, cost, or expense arising from any loss of storage gas that results

from a force majeure event or that is not the result of Transporter's negligence or failure to exercise due

diligence.

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:

(i) Injections in excess of 103 percent of the lowered MDIQ set by Transporter's

interruption order (Lowered Quantity), Shipper shall be assessed and pay penalties based on a price

per Dth equal to three times the midpoint of the range of prices reported for "Columbia Gas,

Appalachia" as published in Platts Gas Daily price survey; or

(ii) Withdrawals in excess of 103 percent of the lowered MDWQ set by Transporter's

interruption order (Lowered Quantity), Shipper shall be assessed and pay penalties based on a price

per Dth equal to three times the midpoint of the range of prices reported for "Columbia Gas,

Appalachia" as published in Platts Gas Daily price survey.

(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 based on a price per Dth

per day equal to three times the midpoint of the range of prices reported for "Columbia Gas, Appalachia" as

published in Platts Gas Daily price survey shall be assessed to Shipper for all quantities in violation of

that operational flow order.

(c) On any Day on which Shipper's injections into storage exceed 110 percent of its applicable MDIQ

as described in Shipper's FBS Service Agreement, Shipper shall pay Transporter a penalty of $5.00 per Dth for

all quantities injected in excess of 110 percent of its MDIQ.

(d) If Shipper's injections into storage on any Day exceed its SCQ, Shipper shall pay Transporter a

penalty of $5.00 per Dth for all quantities injected in excess of its SCQ. If Shipper's withdrawals from

storage on any Day result in its FBS account having a negative SCQ balance, Shipper shall pay Transporter a

penalty of $5.00 per Dth.