Southeast Supply Header, LLC

Original Volume No. 1

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

Original Sheet No. 251 Original Sheet No. 251

GENERAL TERMS AND CONDITIONS

(CONTINUED)

8. IMBALANCE RESOLUTION PROCEDURES (continued)

8.7 Cashout Provision. (continued)

(d) A Cashout of Transportation Imbalances at prices above or

below the average Midpoint price shall not occur if it has

been determined that such Transportation Imbalances are due

to Transporter's negligence. Additionally, a Cashout of

Transportation Imbalances due to Imbalance Due Transporter

quantities or Imbalance Due Cashout Party quantities shall

be limited to the average Midpoint price if such imbalances

occurred during circumstances of Force Majeure that directly

affect the Transporter's or upstream or downstream

facilities over which Gas is transported under the

applicable Agreement, or during circumstances of Force

Majeure that directly affect Shipper's facilities for the

period until Shipper has an opportunity to adjust its

nominations (Shipper shall give written notice within forty-

eight (48) hours of such Force Majeure event), or were the

direct result of an OFO issued to the Shipper or its

supplier.

8.8 Cashout of Transportation Imbalances at Agreement Expiration. At

the time of expiration of an Agreement, all Transportation

Imbalances shall be resolved pursuant to the provisions of

Section 8.7 above.

8.9 Annual System Cashout Mechanism. Transporter shall establish an

annual mechanism to determine the costs of implementing this

Cashout provision. Such mechanism shall calculate, on a system-

wide basis, the annual gross balance (positive or negative)

derived from the Cashout program, which will be accounted for and

disposed of in accordance with Section 22.3 of the General Terms

and Conditions.