Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-361-000, Status: Effective

First Revised Sheet No. 212 First Revised Sheet No. 212 : Effective

Superseding: Superseding Original Sheet No. 212

GENERAL TERMS AND CONDITIONS

(Continued)

an invoice charge for quantities that are

over-delivered. An index price multiplied

by a factor determined by the amount of the

imbalance will be used as the purchase or

invoice price.

price used in the calculation will be the

arithmetic average of the prices per

Dekatherm published each week under the

headings: Columbia Gulf Transmission Co.,

Louisiana; Southern Natural Gas Co.,

Louisiana; Texas Eastern Transmission

Corp., East Louisiana and Transcontinental

Gas Pipeline Corp., Mississippi and

Alabama; in the table entitled "Gas Market

Report", as such prices appear in each

issue of Inside FERC for the month in which

the imbalance occurred.

an imbalance when actual allocated delivery

quantities exceed actual allocated receipt

quantities at the end of each month,

Transporter will invoice transportation

Shipper for such imbalance.

multiplying the imbalance by the

index price determined above

multiplied by each of the following

factors for the applicable percentage

range:

Imbalance Level

Factor

0% to 10%

1.0

above 10% to 15%

1.25

Greater than 15%

1.50