Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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Effective Date: 12/20/2008, Docket: RP09-61-000, Status: Effective

Original Sheet No. 1201 Original Sheet No. 1201

GENERAL TERMS AND CONDITIONS

Section 19

(Continued)

19.2 During Critical Periods, firm Customers who exceed their service

agreement MDQ, and/or any interruptible or firm Customer who

exceeds its daily scheduled quantities by more than 5% shall be

charged a penalty being two (2) times the Penalty Price (for the

Day(s) in which the Critical Period was in effect) per Dekatherm.

19.3 Penalties under this Section are not cumulative and only the

highest applicable penalty will be assessed for any time period

where multiple penalties were in effect. Gulf Crossing may post

on its Internet Web Site instructions to Customers that indicate

specific actions which would benefit the system and do not

require specific approval. Otherwise, before taking any action

which it believes will assist Gulf Crossing in resolving any

operational problem, a Customer should contact Gulf Crossing's

Customer Service Department for approval of such action. No

Customer shall be assessed penalties under this Section where

such penalties were a result of actions taken pursuant to

pipeline directives issued to assist in correcting operational

problems. Any penalties, fees, or other applicable charges

incurred pursuant to this Section shall be invoiced pursuant to

Section 15 hereof.

19.4 On or before the date March invoices are tendered each year

(Annual Review), Gulf Crossing will review the total penalty

revenue collected under this Section for the immediately

preceding calendar year, plus any carry forward amounts inclusive

of interest. If the total penalty revenue collected plus any

carry forward amounts does not equal or exceed $100,000, no

refunds will be paid and the penalty revenue collected and/or any

carry forward amounts will be carried forward for inclusion in

the next Annual Review. Interest will be calculated pursuant to

Section 154.501(d) of the Commission's Regulations and applied to

penalty revenue collected.

(a) If the total penalty revenue collected is $100,000 or more,

Gulf Crossing will credit the total penalty revenue

collected during a given Annual Review in accordance with

the following distribution methodology.

(i) A Customer's eligibility to receive a refund will be

determined solely by its conduct determined on a

monthly basis during the calendar year immediately

preceding the Annual Review where penalty revenues

were collected, including any carry forward amounts

and interest, equal or exceed $100,000.