Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 07/01/2003, Docket: RP00-326-004, Status: Effective

Sixth Revised Sheet No. 212 Sixth Revised Sheet No. 212 : Effective

Superseding: Fifth Revised Sheet No. 212

GENERAL TERMS AND CONDITIONS (Cont'd)

18. IMBALANCE TRANSFERS AND IMBALANCE NETTING AND TRADING

18.1 Transfers Generally. A Shipper may transfer imbalances in its account to its other account(s) or

the accounts of other Shippers under this Section without obtaining Transporters approval with the

exception of the following pipeline segments where operational imbalances between Transporter and

interconnecting pipelines would be adversely affected. The pipeline segments which require Transporter's

prior approval include, but are not limited to, Carter Creek and Central Texas Loop (Brazos).

Any approval required from Transporter before transfer of an imbalance will not be unreasonably

withheld. For purposes of this Section, the term "account" shall mean a Shipper's gas account under a

Service Agreement with Transporter. A Shipper seeking to transfer imbalances between accounts pursuant to

this Section shall notify Transporter electronically through Transporter's EBB using Transporter's

approved nomination form as set forth on Transporter's EBB. Transporter shall not be obligated to provide

any information to a Shipper concerning the account status of other Shipper's accounts. Transporter will

permit a Shipper, upon request, to post on Transporter's EBB an announcement of Shipper's desire to

transfer imbalances, but Shipper shall remain responsible for making all arrangements effecting the

proposed transfer.

18.2 No Cost Transfer. A Shipper may transfer imbalances from an account under a Service Agreement

with Transporter set forth under column "From" to an account under a Service Agreement with Transporter

set forth under Column "To", as set forth below, without incurring transportation charges or surcharges,

and without assessment of Retainage on the transferred quantity:

From To

(a) IPP-Gulf (mainline) (a) IPP-Gulf (mainline)

(b) ITS-1, FTS-1 (b) ITS-1, FTS-1

(d) IPP-Gulf (onshore) (d) IPP-Gulf (onshore)

(e) ITS-2 (onshore), FTS-2 (onshore) (e) ITS-2 (onshore), FTS-2 (onshore)

(f) IPP-Gulf (offshore) (f) IPP-Gulf (offshore)

(g) ITS-2 (offshore), FTS-2 (offshore) (g) ITS-2 (offshore), FTS-2 (offshore)

18.3 Nominated Transfers. A Shipper seeking to transfer imbalances from and to accounts under Service

Agreements with Transporter other than those permitted without cost or assessment of Retainage as set

forth in Section 18.2 shall nominate such imbalance quantities for transportation pursuant to the terms of

the Service Agreement with Transporter under which said imbalance is held in account for Shipper. Such

nomination shall be pursuant to Section 6 (Nominating, Scheduling, and Monitoring) of the General Terms

and Conditions. Nominated and transferred imbalance quantities shall be subject to the charges and

surcharges, and assessment of Retainage applicable to the Service Agreement with Transporter specified in

the nomination. Transportation need not occur in order to effectuate netting or trading of imbalances

within or between rate zones, although netting or trading between rate zones may constitute transportation

service for which charges apply.