Southeast Supply Header, LLC

Original Volume No. 1

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Effective Date: 09/04/2008, Docket: CP07-44-005, Status: Effective

Original Sheet No. 208 Original Sheet No. 208

GENERAL TERMS AND CONDITIONS

(CONTINUED)

1. DEFINITIONS (continued)

The term "Negotiated Rate" shall mean a rate or rate formula for

computing a rate for service under a single Agreement. For

scheduling and curtailment purposes, a Shipper paying a Negotiated

Rate in excess of the Maximum Recourse Rate will be considered to be

paying the Maximum Recourse Rate.

The term "Netting" shall be used to describe the process of

resolving imbalances for a Shipper within an Operational Impact

Area. There are two types of Netting:

a. Summing is the accumulation of all imbalances above any applicable

tolerances for a Shipper or agent.

b. Offsetting is the combination of positive and negative imbalances

above any applicable tolerances for a Shipper or agent.

The term "North American Energy Standards Board" or "NAESB" shall

mean the accredited organization established to set standards for

certain natural gas industry business practices and procedures.