Gulf States Transmission Corporation

Original Volume No. 1

Effective Date: 11/01/2000, Docket: RP00-617-000, Status: Suspended

Original Sheet No. 58U Original Sheet No. 58U : Suspended

GENERAL TERMS AND CONDITIONS (Continued)

24.3 Cashout Procedures

(a) Any imbalance remaining after the end of Trading Period will be

cashed out on a tiered basis pursuant to the following schedule:

OVERAGE UNDERAGE

IMBALANCE LEVEL (Transporter pays Shipper) (Shipper pays Transporter)

---------------- -------------------------- --------------------------

0% to 5% 100% x AMIP 100% x AMIP

Greater than

5% to 10% 90% x AMIP 110% x AMIP

Greater than

10% to 15% 80% x AMIP 120% x AMIP

Greater than

15% to 20% 70% x AMIP 130% x AMIP

Greater than 20% 60% x AMIP 140% x AMIP

(b) Following any offsetting with other Shippers, a Shipper's

remaining imbalance will be cashed out based on the percentage

of that imbalance compared to the total receipts for that

Shipper during the month. For example, if the total receipts

were 1,000 Dth and the remaining underage imbalance after

offsetting with other Shippers was 100 Dth, the total Imbalance

Level would be 10%. The first 5% (50 Dth) would be cashed out

at 100% of the AMIP and the remaining 50 Dth would be cashed

out at 110% of the AMIP.

of the Weekly Index Prices (WIPs). The WIP for any week is the

arithmetic average of the following four index prices reported

in "Gas Price Report" issued by "Natural Gas Week" or any

succeeding publication: