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. 349 Original Sheet No. 349

GENERAL TERMS AND CONDITIONS (Cont'd)

19. PENALTIES

The penalties set forth in this Section apply to the FTS, NTS, NTS-S, TPS, SST, OPT, and ITS Rate

Schedules, unless otherwise indicated in this Section or in individual Rate Schedules.

19.1 Takes in Excess of Total Firm Entitlements. If Shipper's takes on any Day exceed 103 percent of its

Total Firm Entitlement (TFE), Shipper shall be assessed and pay 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 such quantities in excess of its TFE.

19.2 Failure to Interrupt Service. If Shipper fails to interrupt service as directed by Transporter

pursuant to Section 16 (Interruptions of Service) of the General Terms and Conditions, and thereby delivers

gas to or takes gas from Transporter in excess of 103 percent of the sum of the lowered Scheduled Daily

Receipt Quantity or lowered Scheduled Daily Delivery Quantity under all applicable Rate Schedules set by

Transporter's interruption order, 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 for all quantities taken or delivered in excess of its lowered Scheduled Daily

Receipt Quantity or lowered Scheduled Daily Delivery Quantity. The penalties set forth in this Section and in

Section 19.1 shall not both be assessed for the same actions by Shipper.

19.3 Failure to Comply with Operational Flow Orders. If Shipper fails to comply with an OFO issued by

Transporter pursuant to Section 17 (Operational Flow Orders) of the General Terms and Conditions, a penalty

shall be assessed on all quantities taken or delivered in violation of that operational flow order 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 the days on which the OFO is issued.

19.4 Monthly Imbalances. A penalty of $0.25 per Dth shall be assessed to Shipper on any difference between

actual cumulative receipts (less Retainage) and actual cumulative deliveries in excess of 10 percent of actual

cumulative deliveries during a Billing Month.

19.5 Delivery Point Scheduling Penalty.

(a) Non-Critical Day Scheduling Penalty. When a Critical Day has not been declared, Shipper must

pay a daily scheduling penalty for each Dth Transporter delivers to Shipper at the Delivery Point that varies

by 1,000 Dth or by 5% or more over or under scheduled quantities, which ever is greater. The daily scheduling

penalty will be equal to the currently effective rate for service under Transporter's Rate Schedule ITS for

each Dth by which Transporter's deliveries at Shipper's Delivery Point vary by 1000 Dth or by 5% or more from

scheduled quantities, which ever is greater. The non-Critical Day scheduling penalty based on the ITS rate

does not apply when a Critical Day has been declared.

(b) Critical Day Scheduling Penalty. When a Critical Day has been declared, Shipper must pay a

daily scheduling penalty for each Dth Transporter delivers to Shipper at the Delivery Point that varies by

1,000 Dth or by 3% or more over or under scheduled quantities, which ever is greater. When Transporter has

declared a Critical Day, the scheduling penalty will be 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 each Dth by

which Transporter's deliveries vary by 1000 Dth or by 3% or more from scheduled quantities, which ever is

greater.

(c) Shipper must pay the daily scheduling penalty in addition to any other applicable charges. The

scheduling penalty does not apply to Shippers with delivery points that lack electronic metering capability.

Scheduling penalties will not be imposed at delivery points covered by a no-notice service (i.e., primary

delivery points designated in a shipper's SST, NTS or GTS contract(s)).

(d) Transporter may not impose a non-Critical Day scheduling penalty for the same conduct for which

it imposes a Critical Day scheduling penalty, and may not impose either a Critical Day or non-Critical Day

scheduling penalty for the same conduct that is also subject to a TFE, Failure to Interrupt or OFO penalty.

(e) Scheduling penalties will not apply at points of interconnection for which an OBA exists.