Southeast Supply Header, LLC

Original Volume No. 1

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

Original Sheet No. 250 Original Sheet No. 250

GENERAL TERMS AND CONDITIONS

(CONTINUED)

8. IMBALANCE RESOLUTION PROCEDURES (continued)

8.7 Cashout Provision. (continued)

Imbalance which is an Imbalance Due Cashout Party,

Transporter shall make a Cashout payment to Cashout Party

reflecting such excess Receipts.

If a Cashout Party's Monthly Imbalance is less than or

equal to 5%, the monthly Cashout bill will be based on the

average Midpoint price contemplated in Section 8.7(a). If

a Cashout Party's Monthly Imbalance is greater than 5%, the

monthly Cashout bill will be based on the accumulated sum

of the results of the formulas listed below such that, and

until, the total Monthly Imbalance is fully accounted for:

Imbalance

Level Factor Applicable Cashout Price

0% - = <5% 1.00 average Midpoint

>5% - =<10% .90 (Low Common x quantity > 5%) + level above

>10% - =<15% .80 (Low Common x quantity >10%) + levels above

>15% - =<20% .70 (Low Common x quantity >15%) + levels above

>20% - =<25% .60 (Low Common x quantity >20%) + levels above

>25% .50 (Low Common x quantity >25%) + levels above

For purposes of determining the appropriate Cashout Factor,

Cashout Party's imbalance level shall be determined by

taking the lower of (a) the level of imbalance supplied

pursuant to Section 24.2, or (b) the imbalance computed by

comparing (i) the Deliveries at the Delivery Point and (ii)

the Receipts at the Receipt Point and by dividing the

excess Receipts by the total Receipts less Transporter's

Use. For OBA imbalances that are resolved pursuant to this

Section 8, the calculation of the amount due the Cashout

Party relating to excess Receipts shall also include a

Transportation imbalance credit, which shall be calculated

by multiplying the excess Receipt quantity by the actual

weighted average of all applicable usage rates owed on all

quantities of Gas delivered during the Month to that OBA

Party. Transporter shall have no responsibility for the

distribution of funds beyond the initial distribution, in

accordance with this resolutions procedure, to the Cashout

Party.