Gulf Crossing Pipeline Company LLC

Original Volume No. 1

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

Original Sheet No. 1202 Original Sheet No. 1202

GENERAL TERMS AND CONDITIONS

Section 19

(Continued)

(ii) When a penalty refund distribution is made necessary

due solely to interest accumulation during the

immediately preceding calendar year (no additional

penalty revenue was collected under this Section) the

total net penalty revenue, including interest, will be

allocated pro rata to all transportation Customers

based upon each Customer's annual throughput during

the immediately preceding calendar year.

(iii) When a penalty refund distribution is made necessary

because additional penalties were collected during the

immediately preceding calendar year under this

Section, the total carried forward penalty revenue,

including interest, will be allocated equally to the

months in which additional penalties were incurred

during the immediately preceding calendar year as a

part of the refund distribution calculation described

in Section (v).

(iv) Gulf Crossing will credit to its non-offending

transportation Customers (those Customers not

incurring a penalty under this Section for any of

their transportation service agreements during the

month in which penalties were incurred) any penalty

revenue collected for such month from its marketing

affiliate(s), if any, pro rata based upon the non-

offending shipper's throughput during the month in

which the penalty was incurred.

(v) Gulf Crossing will credit to its non-offending

transportation Customers, including Gulf Crossing's

marketing affiliate(s), if any, (those Customers not

incurring a penalty under this Section under any of

their transportation service agreements during the

month in which penalties were incurred) the total net

penalty revenue collected for such month from non-

marketing affiliates, pro rata based upon the non-

offending shipper's throughput during the month in

which the penalty was incurred.