Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/2008, Docket: RP07-174-000, Status: Suspended

Fifth Revised Sheet No. 217 Fifth Revised Sheet No. 217 : Suspended

Superseding: Fourth 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 was caused by a bona fide force

majeure event as defined at Section 15.

behalf 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 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 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.