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. 271 First Revised Sheet No. 271 : Effective

Superseding: Superseding Original Sheet No. 271

GENERAL TERMS AND CONDITIONS

(Continued)

17. CHARGES FOR UNAUTHORIZED TENDERS OR TAKES

order of Transporter in accordance with

Section 19, Shipper shall pay Transporter a

penalty of $2.00 per Dekatherm for all tenders

in excess of 110% of the quantities specified in

the interruption order. Transporter shall

specify such quantities to be interrupted in its

order.

that Shipper is unable to take the appropriate

quantities of gas due to the actions of

Transporter after good faith attempts by the

Shipper to do so.

penalty, the penalty shall not be suspended but

the Shipper may seek a prompt resolution by the

Commission of the dispute.

Operational Flow Order pursuant to Section 12(n)

of the General Terms and Conditions, and Shipper

tenders and/or takes quantities in violation of

such Operational Flow Order, Transporter shall

assess against Shipper, on a daily basis, a

charge of $25.00 per Dekatherm which is tendered

or taken by Shipper in violation of such

Operational Flow Order; provided, however, such

charge will not be assessed to the extent

compliance with an Operational Flow Order is

beyond the Shipper's control and capability as

described in Section 20 of the General Terms and

Conditions. The issuance of and terms and

conditions of an Operational Flow Order shall

constitute notice of Transporter's right to

assess a charge against Shipper for

noncompliance with or violation of the

Operational Flow Order by Shipper.

tenders unauthorized quantities of gas which

exceed the Customer's MDQ, then such Customer

shall pay an amount equal to the product of two

hundred percent (200%) of the rate set forth in

the applicable service agreement times the

quantities taken in excess of MDQ.