Dauphin Island Gathering Partners

First Revised Volume No. 1

Effective Date: 11/01/2000, Docket: RP01- 16-000, Status: Effective

Third Revised Sheet No. 278 Third Revised Sheet No. 278 : Effective

Superseding: Second Revised Sheet No. 278

13.3 Cash Out Procedures:

To the extent monthly imbalances are not resolved pursuant

to Section 13.2, all imbalances accrued by Shipper under

each of its Transportation Service Agreement(s) shall be

resolved on a monthly basis pursuant to this provision,

Section 13.3.

(a) After each month, for the MP and DI systems

individually, Transporter will calculate the

imbalance (in Dth) which exists between the

quantities of gas allocated each day to Shipper for

its account at the Receipt Point(s) during that

month, less lost-and-unaccounted-for gas and

hydrocarbon liquids that condense from the gas stream

prior to the Delivery Point(s) during that month, and

the quantities of gas allocated each day to Shipper

for its account at the Delivery Point(s) during that

month ("Net Monthly Imbalance"). To determine an

applicable penalty percentage, Shipper's Net Monthly

Imbalance will be divided by the scheduled deliveries

under each Transportation Service Agreement during

the month ("Net Monthly Imbalance Percentage").

(b) Subject to the provisions of Subsections (d) and (e)

below, if Shipper has accrued a Net Monthly Imbalance

due Transporter, Shipper shall pay Transporter for

Shipper's Net Monthly Imbalance at the following

prices specified for each stated Net Monthly

Imbalance Percentage.

Net Monthly Imbalance

Percentage Due Transporter Price Per Dth

0 to 2% 100% of Average Price

>2 to 5% 100% of High Price

>5 to 10% 115% of High Price

>10 to 15% 125% of High Price

>15 to 20% 140% of High Price

>20% 150% of High Price

below, if Shipper has accrued a Net Monthly Imbalance

due Shipper, Transporter shall pay Shipper for its

Net Monthly Imbalance at the following prices

specified for each stated Net Monthly Imbalance

Percentage.