Mobile Bay Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 214 Original Sheet No. 214 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(E) If an imbalance or any portion of an imbalance is a direct

result of Shipper's inability to reconcile during the month

due to issuance of Operational Flow Orders pursuant to

Section 12, then the imbalance factor used in the

calculation of the cash-out provision for that month will

be 1.00.

(F) Existing Imbalances - On July 1, 1993, the effective date

of Mobile Bay's Order No. 636 Tariff, Transporter will

transfer all imbalances into a balancing agreement for each

Shipper or as otherwise agreed to between Transporter and

Shipper. Imbalances will be cleared within one year from

July 1, 1993 by a Shipper buying from or selling to other

Shippers, pursuant to this Section 13.

(G) Crediting of Revenue - On an annual basis Transporter shall

credit to those Customers who did not incur a balancing

penalty during the course of the year based on their

transportation throughput during that calender year any net

revenues generated from that cash-in/cash-out program less

the costs of administering the program.