Guardian Pipeline, L.L.C.

Original Volume No. 1

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Effective Date: 09/01/2004, Docket: RP04-432-000, Status: Effective

Third Revised Sheet No. 177 Third Revised Sheet No. 177 : Effective

Superseding: Second Revised Sheet No. 177

GENERAL TERMS AND CONDITIONS

(Continued)

19. RESOLUTION OF IMBALANCES (Continued)

Imbalance

Percentage Factor

> 0%-2% 1.0

> 2%-5% 1.1

> 5%-10% 1.2

>10%-15% 1.3

>15%-20% 1.4

>20% 1.5

(d) Imbalance Due Shipper

When Shipper's NMI is the result of Shipper's actual

receipts exceeding actual deliveries, Transporter

shall pay Shipper for the NMI (in Dth) an amount equal

to the NMI multiplied by the lowest Weekly Gas Price

Index, and that product multiplied by the Factor in

accordance with the following schedule:

Imbalance

Percentage Factor

> 0%-2% 1.0

> 2%-5% 0.9

> 5%-10% 0.8

>10%-15% 0.7

>15%-20% 0.6

>20% 0.5

It is agreed, however, that in the event Shipper owes

Transporter any payments under Section (c) above from

a previous month which are past due, Transporter shall

have the right hereunder to offset payments it owes to

Shipper under this Section (d) by such past due

amounts.

(e) The provisions of Section 8 of the GT&C shall apply to

payments due pursuant to Section 19.3(c) or (d).