Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

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

Original Sheet No. 254 Original Sheet No. 254 : Effective

GENERAL TERMS AND CONDITIONS

(continued)

B. Cash-Out Provisions

It is the responsibility of the Imbalance Party to eliminate end-of-month

imbalances not resolved through the above book-out provisions by cash settlement

with Transporter. Transporter and the Imbalance Party shall settle in cash all

remaining Receipt Imbalances, NNTS Imbalances and Delivery Imbalances unless

otherwise mutually agreed. Transporter will send each Imbalance Party a statement

detailing the quantities resolved through the book-out provisions and the

unresolved imbalance quantities and payment of the amount due Imbalance Party or an

invoice for the amount due Transporter, in accordance with the following:

1. Imbalance Due Transporter

In the event of a Delivery or NNTS Imbalance when actual deliveries exceed

scheduled quantities or a Receipt Imbalance when actual receipts are less

than scheduled quantities, Transporter will invoice the Imbalance Party for

such excess delivery or deficiency of receipts in accordance with the

following provisions:

(a) Such invoice will be based on the Sales Posted Price for the month

multiplied by the applicable factor as follows:

Imbalance Level Factor

0% - 5% 1.00

Greater than 5% - 20% 1.10

Greater than 20% 1.20

Imbalance Level shall be calculated by dividing the imbalance

quantity by the sum of the total quantities scheduled for delivery

or receipt.

For imbalances due Transporter, the Sales Posted Price shall equal

the highest of the simple arithmetic averages, as determined below,

of the daily midpoint spot prices for gas delivered to Transporter

at Florida Gas zone 1, Florida Gas zone 2 or Florida Gas zone 3 as

reported in Gas Daily. The simple arithmetic average for each index

for each month shall be determined by adding the daily midpoint

prices for the flow dates beginning with the sixth calendar day of

the month in which the imbalances occur through the fifth calendar

day of the month following and dividing the sum by the number of

days. In the event that these prices are no longer available or the

basis upon which such prices are reported or calculated in such

publication changes substantively, Transporter will file to change

its tariff and may, at its discretion, select representative prices

in the interim period, subject to Commission approval.