Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2008, Docket: RP07-174-005, Status: Effective

Seventh Revised Sheet No. 217 Seventh Revised Sheet No. 217

Superseding: Sixth Revised Sheet No. 217

GENERAL TERMS AND CONDITIONS (Continued)

19.8 Miscellaneous.

(a) All penalties and charges assessed under this Section shall be paid in addition to the

applicable transportation rates and charges, including any overrun charge.

(b) In the event Shipper seeks to avoid any penalty provided for in this Section on the ground

that such charge was incurred because of a force majeure event as defined at Section 15 (Force Majeure) of the

General Terms and Conditions, Shipper shall document such force majeure event to Transporter. Transporter shall

waive penalties to the extent that it determines that the imbalance or scheduling variance was caused by a bona

fide force majeure event as defined at Section 15.

of, as an assignee of, or otherwise for the benefit of Shipper, does not (i) provide the schedules, allocations,

or other data required by this Section, Section 6 (Nominating, Scheduling, and Monitoring) or Section 8 (Meter

Allocations) of the General Terms and Conditions, or by any other provision of this Tariff on or before the due

dates scheduled by Transporter, or (ii) provide other data required by Transporter within two business days

after Transporter requests such data, Transporter shall have the right to impose penalties based upon the data

otherwise available to Transporter, without regard to actual imbalances. Shipper shall have no right to contest

the imposition of such penalties on the basis that the imbalance levels reflected in the data available to

Transporter are at variance with actual imbalance levels.

(d) Transporter may waive its right to collect all or any portion of the penalties assessed

against Shipper, provided that any such waiver is granted in a nondiscriminatory manner.

(e) To the extent that any imbalance or scheduling variance directly results from Shipper's

reliance on inaccurate data from Transporter, or is otherwise caused by Transporter, no penalty will be assessed

for that portion of the imbalance or scheduling variance shown by Shipper to be attributable to such inaccurate

data.

(f) Transporter will bill penalties based upon volume information available at its close of a

business month. The volume information may be subject to adjustment. Transporter will review the aggregate

impact of any such adjustments on Shipper's account for a given flow month. If the aggregate impact of

adjustments benefits Shipper, Transporter will adjust the penalty bill accordingly. If the aggregate impact of

adjustments worsens Shipper's position, Transporter will not adjust the penalty bill.

(g) Only one penalty will be assessed to a Shipper pursuant to Section 19.1 even though that

Shipper's imbalance gas may be transported through more than one zone under one or more service agreements

between Shipper and Transporter.

(h) The term "zone" is defined as:

(i) the Mainline Zone, designated as being Transporter's pipeline system from

Rayne, Louisiana to Leach, Kentucky;

(ii) the Offshore Zone, designated as being Transporter's pipeline system lying

offshore Louisiana, plus the onshore segment from Pecan Island to Egan, Louisiana; or

(iii) the Onshore Zone, designated as being Transporter's remaining pipeline system

which belongs to neither the Mainline nor Offshore Zones.

(iv) the Offsystem-Onshore Zone, designated as being those facilities identified

in Section 1.25 herein.