Columbia Gas Transmission LLC

Third Revised Volume No. 1

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

Original Sheet No. 157 Original Sheet No. 157

FBS RATE SCHEDULE

FIRM BALANCING SERVICE (Cont'd)

(e) On any Day in which Shipper's unauthorized withdrawals from storage exceed 103 percent of its

applicable MDWQ, as described in Shipper's FBS Service Agreement, Shipper shall pay Transporter a penalty

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Appalachia" as published in Platts Gas Daily price survey for all quantities withdrawn in excess of 103

percent of its MDWQ, provided Transporter shall reduce penalties under this provision to the extent Shipper

may pay penalties under Service Agreements under other Rate Schedules for the same quantities.

(f) If Shipper: (i) violates an operational flow order issued by Transporter to withdraw

quantities; or (ii) carries over quantities beyond the termination of its FBS Service Agreement, any such

quantities automatically shall be forfeited 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be withdrawn from storage within a period of time to be specified in the notice.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.

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

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

(h) In the event 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 that it determines that the imbalance was caused by a bona fide force

majeure event as defined in said Section 15.

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

Shipper or its right to retain all or any portion of Shipper's 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 11, 19.1, 19.2, 19.4, 33, 34, 36 through 42, and 44 through 46.