Columbia Gas Transmission LLC

Third Revised Volume No. 1

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

Original Sheet No. 317 Original Sheet No. 317

GENERAL TERMS AND CONDITIONS (Cont'd)

9.12 General Limitation of Transporter's Obligation. Transporter shall not be required to perform or

continue service on behalf of any Shipper that, within 10 days after receipt of notice from Transporter, fails

to comply with any of the terms of the applicable Rate Schedule and Shipper's Service Agreement with

Transporter; provided however that Shipper's failure to comply with the billing and payment requirements of

this Tariff shall be governed by the provisions of Section 10 (Billing and Payment) of the General Terms and

Conditions. Other provisions of such Rate Schedule notwithstanding, Transporter shall have the right to take

unilateral action to protect the integrity of its system in the event Transporter, in its reasonable

discretion, determines that immediate or irreparable harm to Transporter's facilities or operations will be

caused by Shipper's failure to comply with any of the terms of the applicable Rate Schedule, the terms of

Shipper's Service Agreement with Transporter, or the General Terms and Conditions of this Tariff.

9.13 Balancing at Termination of Service Agreement.

(a) Following the termination of a Service Agreement, Shipper under that Service Agreement shall be

required to correct any outstanding imbalance in receipts and deliveries within 60 days after Transporter

determines, and notifies Shipper, that such an imbalance exists, or within such longer period of time agreed

to by Shipper and Transporter (the balancing period). Shipper shall correct in-kind any undertender imbalance

by making arrangements upstream of Transporter for delivery to Transporter to correct such undertender

imbalance during the balancing period. Shipper shall correct in-kind any overtender imbalance by (i)

obtaining a service agreement (e.g., under the ITS Rate Schedule) from Transporter pursuant to the terms of

this Tariff, and scheduling to receive such overtender imbalance quantities from Transporter under such

service agreement pursuant to the terms of this Tariff, or (ii) otherwise making arrangements pursuant to this

Tariff (e.g., under Section 18 "Inventory Transfers" of the General Terms and Conditions) to dispose of its

overtender imbalance. If, after the end of the balancing period, Transporter determines that an imbalance

continues to exist in Shipper's account, Transporter shall resolve such imbalance as set forth below.

(b) If Transporter determines that it delivered quantities to or for Shipper in excess of the

quantities tendered to Transporter by or for Shipper, Transporter shall assess and collect from Shipper a

penalty. Shipper shall pay Transporter a penalty for each Dth of such outstanding imbalance, grossed up for

the Retainage percentage applicable to Transporter's ITS Rate Schedule. The penalty shall be the sum of: (i)

120 percent of the Spot Market Price for the Month during which such quantities are made up by Transporter.

"Spot Market Price", for purposes of this Section, shall mean, for the applicable Month, the contract index

price for gas delivered to "Columbia Gas Transmission, LLC, Appalachia", as reported in Inside FERC's Gas

Market Report or successor publication. For purposes of calculating Penalty Revenues pursuant to Section 19.6

of the General Terms and Conditions, 100 percent of the Spot Market Price times the applicable number of

replenishment dekatherms shall be retained by Transporter. 20 percent of the Spot Market Price times the

applicable number of replenishment dekatherms shall be treated as Penalty Revenues as defined in Section 19.6

of the General Terms and Conditions. Upon payment of such charge, the imbalance shall be removed from

Shipper's account.

quantities taken by or for Shipper at the delivery point(s), 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.

(d) Transporter may waive the provisions of this Section 9.8 on a nondiscriminatory basis.