Florida Gas Transmission Company, LLC

Fourth Revised Volume No. 1

Effective Date: 07/12/2010, Docket: RP10-842-000, Status: Effective

Second Revised Sheet No. 329 Second Revised Sheet No. 329

Superseding: Sub First Revised Sheet No. 329

GENERAL TERMS AND CONDITIONS

(continued)

24. ACCOUNTING FOR CASH-OUT MECHANISM AND OPERATIONAL CONTROLS

In order to maintain an operational system balance on its pipeline

system, Transporter will incur certain costs, generate certain revenues,

and maintain certain volumetric balances which are subject to in-kind

resolution at a later date. The accounting for and disposition of these

costs and revenues and the interrelationship of the various mechanisms

in maintaining an operational system balance shall be as set forth

below.

A Settlement Period shall mean the production months reflected in a

twelve month accounting period ending each September 30; provided that

the initial Settlement Period subject to these provisions will commence

with the first accounting month following the effectiveness of these

provisions and end the following September 30. Transporter shall

utilize the same production months in each Settlement Period for each

mechanism, notwithstanding differences in the accounting cycles in which

the various mechanisms are recorded.

A. Determination of Account Balances

1. Cash-Out Mechanism Account

Amounts invoiced and paid pursuant to the provisions of Section

14.B of these General Terms and Conditions ("GTC"), less the

transportation component of such charges, will be recorded as

cash-out mechanism revenues and costs with the associated volumes.

Following each service year ending on September 30, Transporter

will determine the volumetrically balanced net cash balance of the

Cash-Out Mechanism Account for the Settlement Period attributable

to the application of the Imbalance Level factors and posted price

indices provided for in Section 14.B herein by:

a. Totaling the volumetric imbalances due Imbalance Parties and

the amounts paid by Transporter to such Imbalance Parties, and

calculating the weighted average price paid for such

imbalances; and

b. Totaling the volumetric imbalances due Transporter and the

amounts invoiced for such imbalances (net of transportation

component), and calculating the weighted average price for such

imbalances; and