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. 279 Original Sheet No. 279

GENERAL TERMS AND CONDITIONS

(CONTINUED)

23. PENALTIES AND PENALTY CREDITING MECHANISM (continued)

23.2 Trespass Gas

In the event that Transporter receives penalty revenue from a

Shipper as the result of the application of Section 7.3 (Trespass

Gas) of the General Terms and Conditions, Transporter shall credit

the penalty revenue received, net of costs, to the System

Balancing Adjustment, Section 22.3 of the General Terms and

Conditions. Any penalty revenue credited to the System Balancing

Adjustment pursuant to this section shall include interest

calculated in accordance with Section 154.501 of the Commission's

regulations.

23.3 Conversion of Gas

In the event that Transporter receives penalty revenue from a

Shipper as the result of the application of Section 7.4

(Conversion of Gas) of the General Terms and Conditions,

Transporter shall credit the penalty revenue received, net of

costs, to the System Balancing Adjustment, Section 22.3 of the

General Terms and Conditions. Any penalty revenue credited to the

System Balancing Adjustment pursuant to this section shall include

interest calculated in accordance with Section 154.501 of the

Commission's regulations.

23.4 Action Alert/Operational Flow Order Penalties

Any penalty revenue collected by Transporter pursuant to Section

13.8 of the General Terms and Conditions will be credited, net of

costs, to any firm or interruptible Shipper that did not incur

penalties pursuant to Section 13.8 of the General Terms and

Conditions in the Month for which penalty revenues were received

("Non-Offending Shipper"), based on the ratio of the actual

quantities taken by the Non-Offending Shipper to the actual

quantities taken by all Non-Offending Shippers in such Month.

Such credits shall be made within 90 days following each

anniversary of the initial in-service date of Transporter's system

and shall include interest at the rate determined in accordance

with Section 154.501 of FERC's regulations.