Discovery Gas Transmission LLC

Original Volume No. 1

Effective Date: 09/01/2002, Docket: RP00-319-003, Status: Effective

Third Revised Sheet No. 146 Third Revised Sheet No. 146 : Effective

Superseding: Second Revised Sheet No. 146

9.10 UNAUTHORIZED OR UNCLAIMED GAS - Unauthorized Gas means Gas received into

Transporter's System for which a nomination has not been submitted, or

which has not been confirmed and scheduled by Transporter. Transporter

will post a notice on its Internet web site (web site) that unauthorized

Gas has been received, the point of receipt, and the approximate date(s)

of receipt. The party responsible for the delivery of unauthorized Gas

into Transporter's System shall have thirty (30) Days to submit a valid

claim for such Gas, submit records from independent parties verifying

its ownership of such Gas, and make arrangements with Transporter for

the Transportation of the Gas under the terms of an IT Service

Agreement. The party claiming Gas must indemnify Transporter against

any adverse claims to such Gas. Unauthorized Gas will be subject to a

scheduling penalty of Ten Dollars ($10.00) per Dt, which penalty shall

be waived by Transporter if such Unauthorized Gas does not cause an

operational problem on the System. If unauthorized Gas is delivered

into Transporter's System while an OFO or curtailment order is in effect

on a System-wide basis or for the Receipt Point where the gas was

delivered into the System, the unauthorized Gas will be subject to an

OFO penalty or curtailment penalty, as appropriate, in addition to all

other applicable charges and penalties. Gas left unclaimed for more

than thirty (30) Days will become the property of Transporter. Failure

to claim unauthorized Gas will not relieve the party responsible for

injecting said Gas from paying OFO, curtailment, or scheduling penalties

if the ownership of the Gas can be substantiated by Transporter.

9.11 UNAUTHORIZED GAS REVENUES - Transporter will refund or carry forward,

for each calendar Year, any difference between the penalty revenues

received by Transporter and the costs incurred by Transporter as a

result of Unauthorized Gas. To the extent the difference between costs

and revenues in respect of such Unauthorized Gas penalties during any

calendar Year is less than Four Hundred Thousand Dollars ($400,000),

Transporter shall carry forward the difference to the next calendar

Year. To the extent, the difference is greater than Four Hundred

Thousand Dollars ($400,000), Transporter shall refund or invoice each

System Shipper in proportion to such Shipper's use of the System during

such calendar Year within one hundred twenty (120) Days after the end of

the calendar Year. Any such difference, whether a positive or negative,

shall include interest at the rate set forth in section 154.501 of the

Commission's regulations.