Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 01/16/2005, Docket: RP05-126-000, Status: Effective

Third Revised Sheet No. 94 Third Revised Sheet No. 94 : Effective

Superseding: Second Revised Sheet No. 94

IMS RATE SCHEDULE

IMBALANCE MANAGEMENT SERVICE (Continued)

quantities have not been returned to Transporter's system at the expiration of any Service Agreement executed

by Transporter and Shipper, Transporter and Shipper may mutually agree to an extended time frame and/or

modified terms, including the rate, of such Service Agreement. In the event that Transporter and Shipper are

unable to come to such agreement, Transporter shall notify Shipper, and Shipper shall nominate for removal of

the IMS parked quantities or return of the IMS loaned quantities within the time frame specified in

Transporter's notice. Any IMS parked quantities not removed within the time frame specified by Transporter's

notice shall become the property of Transporter at no cost to Transporter, free and clear of any adverse

claims. Transporter shall post such forfeited quantities on its Internet EBB as gas available for sale to the

highest bidder within a 24 hour notice period. Upon receipt of payments, Transporter shall credit to the

account of the Shipper whose gas was forfeited 80 percent of the proceeds from such sale, and shall retain the

remaining 20 percent of such proceeds as a reimbursement fee. If Shipper does not return loaned quantities

within the time frame specified by Transporter's notice, Shipper shall reimburse Transporter for the cost of

each Dth of the loaned quantity ("Reimbursement Fee"). The Reimbursement Fee shall be determined by selling

the gas to Shipper at 150 percent of the Spot Market Price. In the event that Shipper makes a timely and

valid nomination which Transporter subsequently confirms in response to notification by Transporter to remove

IMS parked quantities, Shipper shall be deemed to have complied with Transporter's notification. In the even

Shipper makes a timely and valid nomination to clear a remaining parked quantity and Transporter does not have

sufficient capacity to allow the required park withdrawal, Shipper shall be allowed an additional day for each

such constrained day during the timeframe specified in Transporter's notice to clear the remaining parked

quantity. In the event that Shipper makes a timely and valid nomination to clear a remaining loan quantity

and Transporter does not have sufficient capacity to allow the required loan payback, Shipper shall be allowed

an additional day for each such constrained day during the timeframe specified in Transporter's notice to

clear the remaining loan quantity.

(d) The Reimbursement Fee shall be considered Penalty Revenue and Transporter shall credit them

in accordance with the provisions of Section 19.6 of the General Terms and Conditions.

(e) For purposes of this Section 5, "Spot Market Price" shall be defined, for each Dth on each

applicable Day on which the gas was to be repaid, as follows: (a) for the mainline system, the "Columbia

Gulf, Mainline" price index for Louisiana-Onshore South as published in Gas Daily's Daily Price Survey, or any

successor publication; (b) for the onshore lateral system, the "Columbia Gulf, LA" price index for Louisiana-

Onshore South, as published in Gas Daily's Daily Price Survey, or any successor publication; and (c) for the

offshore lateral system, the "Columbia Gulf, LA" price index for Louisiana-Onshore South, as published in Gas

Daily's Daily Price Survey, or any successor publication, less applicable transportation charges.

(f) Transporter may terminate an IMS Service Agreement upon five (5) Days written notice if

Shipper fails to comply with the operational requirements set out in this Section 5.

(g) Within forty-five (45) days after the first year of IMS service, Transporter will file a

report on its Rate Schedule IMS Service and will include (1) the dates of service, (2) the amount parked or

loaned for each day by transaction, (3) the name of the Shipper, (4) whether Shipper is affiliated with

Transporter, (5) points involved in the transaction, and (6) the IMS rate charged as well as any related

transportation charge.

6. 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 4, 11, 14, 31 through 33, and 37.