Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: RP98- 17-000, Status: Effective

Substitute Original Sheet No. 165 Substitute Original Sheet No. 165 : Effective

Superseding: Original Sheet No. 165

(e) Shipper may trade imbalances, on a monthly basis

with other Shippers utilizing Transporter's

Facility. In order to facilitate such trading,

Transporter shall, upon request, assist in matching

Shippers that have overdelivered gas into

Transporter's Facility with Shippers making similar

requests that have underdelivered gas into such

Facility. Upon receipt of a written notice signed

by two (2) Shippers that they have traded

imbalances, Transporter shall issue revised

imbalance statements to both Shippers. After

written notice of a trade of imbalances is delivered

to Transporter, the trade shall be final.

Transporter shall have no liability with respect to

any trading of imbalances by Shipper.

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 of transportation on Transporter's

system, under each of Shipper's Transportation

Service Agreements 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 applicable

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 TransporterPrice Per Dth

0 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