Crossroads Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 198 Original Sheet No. 198 : Effective

GENERAL TERMS AND CONDITIONS (Cont'd)

19. PENALTIES

The penalties set forth in this Section apply to the FT-1 and IT-1 Rate Schedules, unless otherwise

indicated in this Section or in individual Rate Schedules.

19.1 Takes in Excess of Total Firm Entitlements. If Shipper's takes on any Day exceed 103 percent of its

Total Firm Entitlement (TFE), Shipper shall be assessed and pay a penalty of $10.00 per Dth for all such

quantities in excess of 103 percent of its TFE.

19.2 Failure to Interrupt Service. If Shipper fails to interrupt service as directed by Transporter

pursuant to Section 16 (Interruptions of Service) of the General Terms and Conditions, and thereby delivers

gas to or takes gas from Transporter in excess of 103 percent of the sum of the lowered Scheduled Daily

Receipt Quantity or lowered Scheduled Daily Delivery Quantity under all applicable Rate Schedules set by

Transporter's interruption order, Shipper shall be assessed and pay penalties of $5.00 per Dth on the first

three percent of quantities taken or delivered in excess of its lowered Scheduled Daily Receipt Quantity or

lowered Scheduled Daily Delivery Quantity, and $10.00 per Dth for quantities taken or delivered in excess of

103 percent of its lowered Schedule Daily Receipt Quantity or lowered Daily Scheduled Delivery Quantity.

The penalties set forth in this Section and in Section 19.1 shall not both be assessed for the same actions

by Shipper.

19.3 Failure to Comply with Operational Flow Orders. If Shipper fails to comply with an operational flow

order issued by Transporter pursuant to Section 17 (Operational Flow Orders) of the General Terms and

Conditions, a penalty of $5.00 per Dth per day shall be assessed on all quantities taken or delivered in

violation of that operational flow order.

19.4 Monthly Imbalances. A penalty of $0.25 per Dth shall be assessed to Shipper on any difference

between actual cumulative receipts (less Retainage) and actual cumulative deliveries in excess of 10 percent

of actual cumulative deliveries during a Billing Month.

19.5 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.