Guardian Pipeline, L.L.C.

Original Volume No. 1

Effective Date: 12/31/2008, Docket: RP09-82-000, Status: Effective

First Revised Sheet No. 219 First Revised Sheet No. 219

Superseding: Original Sheet No. 219

GENERAL TERMS AND CONDITIONS

(Continued)

34. FLOW THROUGH OF CASH-OUT REVENUES AND PENALTIES IN EXCESS OF COSTS

(Continued)

34.2 Flow Through of Penalties in Excess of Costs

(a) This section of the GT&C sets forth the procedures

under which Transporter will flow through to Shippers

any penalty revenues in excess of costs collected

pursuant to Sections 12.3(f), 14.1, 14.2 and 18.5 of

the GT&C and Section 7 of Rate Schedule(s) FT-1 and

FT-2. Transporter will reduce such penalty revenues

flowed through to Shippers by the amount of all out-

of-pocket costs incurred as a direct result of the

Shipper conduct that was penalized pursuant to these

Sections.

(b) The crediting period applicable to this Section 34.2

shall be monthly.

Transporter will net all revenues received pursuant to

Sections 12.3(f), 14.1, 14.2 and 18.5 of the GT&C and

Section 7 of Rate Schedule(s) FT-1 and FT-2 against

the costs incurred for such revenues. Transporter

will credit the net amount to those Shippers under

Rate Schedule(s) FT-1, FT-2, IT-1, and IT-2 that were

not billed pursuant to Sections 12.3(f), 14.1, 14.2

and 18.5 of the GT&C and Section 7 of Rate Schedule(s)

FT-1 and FT-2, during the applicable month ("Non-

Offending Shippers"). Each Non-Offending Shipper's

credit shall be based on the ratio of the actual

revenues collected for services to the Non-Offending

Shipper during the month to the actual revenues

collected for services to all Non-Offending Shippers.

Each Non-Offending Shipper's credit shall be paid with

a billing adjustment to the billing of charges for

service during the following month.