Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 11/02/1998, Docket: RP98-427-000, Status: Effective

Fourth Revised Sheet No. 156 Fourth Revised Sheet No. 156 : Effective

Superseding: Third Revised Sheet No. 156

GENERAL TERMS AND CONDITIONS (Continued)

(e) When a Shipper has more than one receipt point or more than one delivery point, such

Shipper shall specify in its nomination the supply reduction priorities and delivery reduction

priorities (Priority Reduction List) to be utilized at the receipt points or delivery points in

the event of a loss of volume at the receipt points or delivery points.

(f) If only partial confirmations are received by Transporter from the upstream and downstream

entities delivering or receiving gas on behalf of Shipper, Shipper's nominations shall be reduced

in accordance with the priorities set forth on the Priority Reduction List furnished by Shipper.

(g) If after Shipper's gas is confirmed, Transporter is notified that Shipper's gas is not

available, then Transporter may cease deliveries.

(h) If Transporter receives gas into its system which has not been nominated and confirmed

for transportation by Transporter, Transporter shall provide written notification to the operator

delivering the gas into Transporter's pipeline that unauthorized deliveries have occurred. Within

fifteen days after Transporter notifies the delivering operator of the unauthorized delivery of

gas, if Transporter has not received from such operator a written designation of a Shipper with

a Service Agreement which was effective when the unauthorized deliveries occurred as well as

written confirmation from such Shipper that it is willing to accept the gas under its Service

Agreement, the gas shall become the property of Transporter at no cost to Transporter, free and

clear of any adverse claims. Transporter shall credit such forfeited gas to company-use gas.

(i) The Explicit Confirmation process requires that the Confirming Party and Transporter

respond to a Request for Confirmation or initiate an unsolicited Confirmation Response. Absent

mutual agreement to the contrary, Explicit Confirmation is the default methodology.

(j) The Confirming Party may elect to use a Confirmation by Exception process instead of the

Explicit Confirmation process subject to the following conditions:

(1) The Confirming Party provides Transporter with written notification of this election,

(2) The Confirming Party may notify Transporter in writing of a desire to prospectively

revert to the Explicit Confirmation process and Transporter shall honor such request,

(3) Transporter may notify the Confirming Party in writing of a desire to prospectively

revert to the Explicit Confirmation process and the Confirming Party shall honor such request,

(4) The Confirming Party is deemed to confirm the quantities as reported by Transporter

either on Transporter's EBB or GISB EDI confirmation data sets unless the Confirming Party

provides notification to Transporter of a lesser quantity by the established confirmation

deadlines,