Crossroads Pipeline Company

First Revised Volume No. 1

Effective Date: 11/01/2001, Docket: RP02- 14-000, Status: Effective

Original Sheet No. 191 Original Sheet No. 191 : Effective

GENERAL TERMS AND CONDIITONS

(Continued)

18.5 Rejection by Transporter. Transporter may, in its reasonable discretion, reject any proposed

transfer if it determines that such transfer cannot be accommodated: (i) without diminishing Transporter's

ability to provide firm service to any Shipper; (ii) without increasing Transporter's firm service

obligations; (iii) because the gas sought to be transferred is not on Transporter's system; (iv) because of

the actual account status of the transferor's and transferee's accounts, as reflected in Transporter's

records; (v) because the transfer is requested to have a retroactive effective date; or (vi) without

threatening the integrity of Transporter's system. If the transfer is rejected pursuant to this

Section 18.5, Transporter shall provide the Shipper seeking to transfer imbalance that Shipper's actual

account status under the applicable Service Agreement.

18.6 Definitions. For purposes of this Section 18 the following definitions shall be applicable:

(1) “Operational Impact Area” is the term used to describe Transporter's designation of the

largest possible area(s) on its system in which imbalances have a similar operational effect.

(2) “Netting” is the term used to describe the process of resolving imbalances for Shipper within

an Operational Impact Area. There are two types of Netting:

(a) Summing is the accumulation of all imbalances above any applicable tolerances for

Shipper or agent; and

(b) Offsetting is the combination of positive or negative imbalances above any applicable

tolerances for Shipper or agent.

18.7 Month-end Imbalances.

(a) Transporter shall allow Shipper (including agents of Shipper) to net imbalances within the

same Operational Impact Area on and across service agreements with Shipper and to trade imbalances within

the same Operational Impact Area.

(b) Transporter shall provide Shippers the ability to post and trade imbalances until at least

the close of the seventeenth (17th) business day of the month.

imbalances.

(d) Imbalances to be posted for trading should be authorized by Shipper.

(e) Authorizations to post imbalances that are received by Transporter by 11:45a.m. (C.T.) should

be effective by 8:00 a.m. (C.T.) the next business day. Imbalances previously authorized for posting should be

posted on or before the ninth (9th) business day of the month.