Columbia Gas Transmission LLC

Third Revised Volume No. 1

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

Original Sheet No. 377 Original Sheet No. 377

GENERAL TERMS AND CONDITIONS (Cont'd)

Section 32.4 up to the daily entitlements of applicable Shippers. Transporter shall reduce the daily

entitlement of each applicable Shipper which has taken quantities of gas in excess of one hundred and three

percent (103%) of the monthly quantities underlying Shipper's ASQ or Authorized Quantities through the prior

Billing Month of the current Winter Season or Summer Season, as the case may be, by a quantity determined by

multiplying such excess takes in millions of dekatherms (0.000 MMDth) by thirty-five thousand dekatherms (35

MDth). Transporter's remaining deficiency, if any, shall then be allocated among all applicable Shippers in

proportion to each Shipper's reduced daily entitlement.

(b) If the imposition of daily curtailment pursuant to Subsection (a) above prevents Shipper from

taking its Authorized Quantity for a given Winter Season, the quantity not taken by Shipper shall be added to

its Authorized Quantity for the succeeding Summer Season. In such event, Shipper shall submit a verified

statement, in form and content satisfactory to Transporter, setting forth the circumstances and the extent to

which said daily curtailment prevented Shipper from taking its Authorized Quantity.

subject to the penalty provisions set forth in Section 19.1 of the General Terms and Conditions. For the

purpose of determining the amount of such penalties, Shipper's curtailed daily entitlement shall be deemed to

constitute Shipper's "Effective Daily Quantity" as that term is used in said Section 19.1.

32.5 Distribution of Penalty Amounts. Penalty amounts collected by Transporter pursuant to Subsections

32.1(e) and 32.4(c) shall be distributed separately for each Winter Season and each Summer Season among those

Shippers under firm sales rate schedules which did not take quantities of gas in excess of either their

Authorized Quantities or their curtailed daily entitlements during the time Transporter was in curtailment.

The penalty amounts applicable to each season shall be divided by Transporter's total deliveries under firm

sales rate schedules to all such Shippers for such season. The resultant quotient, expressed to the nearest

one one-hundredth of one cent (.01¢) per Dth, shall be applied to the deliveries made by Transporter to each

such Shipper during the season in question. The amount so determined shall appear as a credit on each such

Shipper's gas purchase invoice issued for the last Billing Month of the succeeding season.

32.6 Exemptions from Curtailment.

(a) Transporter recognizes that exceptions to the levels of curtailment resulting from this Section 32

may be required in response to emergency situations (including environmental emergencies) during periods of

curtailment when deliveries of gas in excess of curtailed levels are required to forestall irreparable injury

to life or property or to provide for minimum plant protection. Any Shipper seeking emergency relief on this

basis shall have the burden of establishing under oath the nature and extent of its problem and the minimum

quantity of gas needed to avoid irreparable injury to life or property. In such event, Shipper may be

exempted from curtailment to the extent necessary to respond to the emergency situation. Exemptions under this

Subsection (a) shall be granted within Transporter's reasonable discretion, and all exempt quantities

delivered by Transporter shall be returned by Shipper as soon as possible.

(b) Transporter also recognizes that exceptions to the levels of daily curtailment resulting from

Section 32.4 above may be required to avoid impairment of service for essential agricultural uses during

periods when, absent the curtailment of residential, small commercial and other high-priority uses, deliveries

of gas in excess of curtailed levels are necessary to satisfy said essential agricultural uses within

contractual entitlements. Any Shipper seeking an exemption from curtailment in accordance with this

Subsection (b) shall have the burden of establishing under oath the minimum quantity of gas needed to protect

said essential agricultural uses. In such event, Shipper may be exempted from daily curtailment to the extent

necessary to satisfy said essential agricultural uses.