Gulf States Transmission Corporation

Original Volume No. 1

Effective Date: 11/01/2000, Docket: RP00-617-001, Status: Effective

Substitute Original Sheet No. 58T Substitute Original Sheet No. 58T : Effective

GENERAL TERMS AND CONDITIONS (Continued)

24. IMBALANCES

24.1 Responsibility for Balancing

In addition to delivering and receiving volumes of gas in conformance

with nominations, Shippers are responsible for conforming their takes at

Delivery Points with their deliveries to Transporter at Receipt Points

each day. Transporter has no obligation to deliver for the account of a

Shipper more volumes of gas than Transporter has received for the account

of the Shipper or to accept for the account of the Shipper more volumes

of gas than are being delivered for the account of the Shipper on any

day.

24.2 Monthly Imbalances, Netting and Offsetting

At the end of each calendar month, to the extent the net receipts do

not equal the deliveries under an Agreement on a Dth basis, the

following transportation fees and netting and offsetting procedures

will apply:

(a) A transportation charge under the applicable provision(s) of

Sheet Nos. 5 and 6 will be assessed for any positive imbalance

remaining at the end of a month.

(b) Imbalances under a Shipper's different agreements will be

netted together to obtain the Shipper's total Monthly Imbalance

("TMI"). The TMI will be shown on the monthly billings sent to

Shippers. To facilitate the trading or offsetting of Shipper's

TMI, Gulf States will post on its Internet Website, on or

before the ninth business day of the month, the TMI of any

Shipper that has not notified Gulf States in writing that the

Shipper does not elect to have that information posted.

Shippers or their agents may then trade offsetting imbalances

with Shippers or their agents until the close of business on

the seventeenth day of the month (Trading Period). Parties

that agree to trade all or part of an imbalance must notify

Gulf States in writing on or before the seventeenth business

day of the month through submission of an Imbalance Trade

Confirmation form; otherwise, such trade shall not be

effective. Upon receipt of an Imbalance Trade Confirmation,

Gulf States will send an Imbalance Trade Notification to the

trading parties by noon (Central Clock Time) the next business

day. Any Shipper imbalance remaining after the Trading Period

will be cashed out as described in Section 24.3.