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. 276 Original Sheet No. 276

GENERAL TERMS AND CONDITIONS

(CONTINUED)

22. PERIODIC RATE ADJUSTMENTS (continued)

22.2 Transporter's Use.

(a) The initial Transporter's Use (%) will be calculated based

upon appropriate engineering principles. After one year of

operation and each June 1 thereafter commencing in 2009,

Transporter's Use (%) will be redetermined by dividing

Transporter's projection for the next 12 Months beginning

June 1 of fuel usage and any lost and unaccounted-for Gas by

Transporter's projection of applicable deliveries for the

account of Shippers for the next 12 Months beginning June 1.

This percentage will go into effect on June 1. Transporter

may file interim proposals between annual filings subject to

approval by the Commission.

(b) Pursuant to Section 22.3, Transporter shall maintain a

separate System Balancing Adjustment account. This account

shall be credited for all sales of excess fuel collected

under Transporter's Use, debited for all purchases for

Transporter's Use and further adjusted for the operational

activities enumerated in Section 22.3(a).

22.3. System Balancing Adjustment. In order to maintain an operational

system balance on its system, Transporter will calculate a system

balancing adjustment ("SBA") charge.

(a) Transporter's SBA balance shall be the sum of:

(1) The net annual system Cashout balance determined in

accordance with Section 8 of the General Terms and

Conditions and OBA cashouts;

(2) The net Transporter's Use Adjustment balance,

determined in accordance with Section 22.2 of the

General Terms and Conditions;

(3) Penalty revenues credited pursuant to Sections

23.1(a), 23.1(b), 23.2, and 23.3 of the General Terms

and Conditions; and

(4) Any other account balance as may be approved by the

FERC.