Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

Effective Date: 09/01/2006, Docket: RP06-463-000, Status: Effective

Original Sheet No. 252 Original Sheet No. 252 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

14. MONTHLY BALANCING

Unless otherwise agreed, and except for Alert Day balancing under Section 13.D and any

noncompliance quantities determined in accordance with Section 13.A.(3), all imbalances

shall be resolved monthly in accordance with the following provisions set forth in this

Section.

Receipt imbalances shall be determined in accordance with Section 12 (Determination of

Daily and Monthly Receipts). Delivery imbalances shall be determined in accordance with

Section 13 (Determination of Daily Deliveries-Market Area) or Section 13.1 (Determination

of Daily and Monthly Deliveries-Western Division). NNTS Imbalances shall be as defined in

Section 14.B.4. hereof. For purposes of this section, Imbalance Party shall mean the

Shipper, OBA Party, or Delivery Point Operator that is responsible for resolution of an

imbalance under Section 12, or Section 13, or Section 13.1.

Transporter shall provide the Imbalance Party with a preliminary balancing statement at

the same time it renders transportation usage invoices for a particular month, and shall

post a listing of Receipt, NNTS and Delivery Imbalances on its Internet website.

Imbalance Party shall have a book-out period of 10 days from the date of posting to

utilize the book-out provisions in Section 14.A below. Transporter shall utilize the

cash-out provisions in Subsection 14.B below to resolve all imbalances remaining following

the close of the book-out period.

A. Book-Out Provisions

Imbalance Party(ies) may net on a volumetric basis Receipt Imbalances due

Transporter with Receipt Imbalances due Imbalance Party. Imbalance Party(ies) may

net on a volumetric basis NNTS Imbalances due either Transporter or Imbalance Party

only with other NNTS Imbalances or with Receipt Imbalances. Additionally,

Imbalance Party(ies) may net Delivery Imbalances due Transporter with Delivery

Imbalances due Imbalance Party, respectively for Western Division and Market Area

Shippers; provided however, that where Imbalance Party is an SFTS Shipper or its

designee, such Imbalance Party shall only be permitted to net Delivery Imbalances

with other SFTS Shippers unless the SFTS Shipper agrees to pay the rate

differential between the SFTS Usage Charge and the weighted average of the FTS-1,

FTS-2 and FTS-WD Usage Charges including the maximum applicable usage surcharges,

scheduled at the delivery points which are the responsibility of the Imbalance

Party on any SFTS Delivery Imbalance involved in a book-out. Receipt Imbalances

may not be netted with Delivery Imbalances. Imbalance Party(ies) availing

themselves of this provision must submit a completed book-out agreement by mail or

facsimile to Transporter before the end of the book-out period. Such agreement