Columbia Gulf Transmission Company

Second Revised Volume No. 1

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

Fifth Revised Sheet No. 218 Fifth Revised Sheet No. 218 : Suspended

Superseding: Fourth Revised Sheet No. 218

GENERAL TERMS AND CONDITIONS (Continued)

19.9 Penalty Crediting Mechanism.

(a) The purpose of this provision is to provide the mechanism by which Transporter shall credit

any "Penalty Revenues," as defined herein, to "Non-Penalized Shippers."

(b) For purposes of this Section 19.6 the following definitions shall apply:

(i) The term "Penalty Revenues" shall mean penalty amounts assessed and actually

collected, net of Transporter's costs, during each month of a contract year (November 1 to October 31),

pursuant to the penalty provisions of this Tariff; exclusive of (A) Transporter’s actual gas, transportation

and retainage costs for the replenishment of gas quantities with respect to PAL Rate Schedule Section 5(b) and

IMS Rate Schedule Section 5(c), and (B) overrun charges imposed pursuant to the terms of any of Transporter's

Rate Schedules.

(ii) The term "Non-Penalized Shippers" shall mean Shippers, other than Shippers that were

assessed penalties during any month of a contract year (November 1 to October 31) pursuant to the penalty

provisions of this Tariff, under all of Transporter's Rate Schedules, except the AS-Gulf and IPP-Gulf Rate

Schedules.

for each month of the preceding contract year. Transporter will include interest on the Penalty Revenues

balance at the rate specified in the Commission’s Regulations at Section 154.501(d)(1). Transporter shall

allocate such Penalty Revenues for that month to the Non-Penalized Shippers based on their actual throughput

for that month and in the case of service under Rate Schedule PAL, Transporter shall allocate such Penalty

Revenues based on Non-Penalized Shipper’s PAL service agreement account balance for that month. Transporter

shall credit the bills of Non-Penalized Shippers that are the original capacity holders (and not Assignees

under Section 14 (Release and Assignment of Service Rights) of the General Terms and Conditions) for such

allocated amounts within 60 days of the end of the contract year.

(d) Transporter will file a report within 60 days of the close of the contract year showing the

Penalty Revenues, the costs netted against the Penalty Revenues, and the resulting Penalty Revenue credits

for each month of the contract year (November 1 to October 31). The report will (1) identify Transporter’s

incremental out-of-pocket costs that were caused by Shipper misconduct and the Shipper misconduct that

caused the costs; (2) account separately for these costs; and (3) provide supporting documentation of the

costs and the Shipper misconduct that caused them.

Columbia Gulf Transmission Company Second Revised Sheet No. 218

FERC Gas Tariff Superseding

Second Revised Volume No. 1 First Revised Sheet No. 218

Issued by: Carl W. Levander, Vice President

Issued on: October 25, 2002 Effective: