Crossroads Pipeline Company

Original Volume No. 1

Effective Date: 10/02/1995, Docket: CP94-342-001, Status: Effective

Original Sheet No. 23 Original Sheet No. 23 : Effective

3.10 Penalty Credits

Crossroads shall credit on a monthly basis to all firm

Shippers any imbalance, scheduling and unauthorized overrun

penalties assessed and collected from any affiliate of

Crossroads in accordance with the terms of paragraphs 3.8

and 3.9 of Rate Schedule FT-1 and paragraphs 3.7 and 3.8 of

Rate Schedule IT-1, the second preceding calendar month.

Crossroads' credit to each individual Shipper shall be on a

pro rata basis expressed as a function of the Shippers firm

demand charges to total firm demand charges for the month

for which the penalty was assessed. Any Shipper incurring

an imbalance penalty during a particular month shall not be

eligible to receive a credit of any such penalty. In no event

may a Shipper receive penalty credits in excess of Shippers

firm demand charges for the month for which the penalty was

assessed.

4. NOMINATION AND SCHEDULING OF RECEIPTS AND DELIVERIES

All nominations are subject to confirmation by Crossroads

and to confirmation by upstream suppliers and transporters and

downstream transporters or Delivery Point operators.

Crossroads shall schedule such nominations in accordance with

Section 13 of its General Terms and Conditions of this Tariff. If

Shipper fails to comply with the provisions of Section 13 of the

General Terms and Conditions of this Tariff, then Crossroads

shall not schedule the initiation of or changes to service

nominated by Shipper.

Crossroads will contact upstream suppliers and transporters to

verify that gas is flowing as scheduled and reserves the right to

take any other necessary action to verify that gas is flowing as

scheduled by Crossroads. Upon request of Crossroads, Shipper

shall contact its sources of supply and its delivery customer(s)

to verify that its source(s) flow as scheduled hereunder and that

its customer(s) take delivery as scheduled hereunder. Shipper may,

with the consent of Crossroads, nominate receipts or deliveries

necessary to make up accumulated imbalances, but Crossroads may,

at its sole discretion, withhold its consent to such schedule

changes due to operating considerations.

Receipts of gas to Crossroads for transportation hereunder shall

be made at a point or points on Crossroads' Pipeline system at a

pressure sufficient to enter the Pipeline system, and deliveries

of gas from Crossroads for Shipper shall be made at such point or

points on Crossroads' Pipeline system as specified in the

executed Service Agreement.