Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

Effective Date: 01/31/2003, Docket: RP99-286-002, Status: Effective

Sub First Revised Sheet No. 145 Sub First Revised Sheet No. 145 : Superseded

Superseding: First Revised Sheet No. 145

RATE SCHEDULE LMS

(Load Management Service)

(continued)

4. Daily Variances (continued)

Operator shall take action to correct any imbalances occurring

during the month by making adjustments in nomination and gas flows.

If a Delivery Point Operator fails to take such corrective action,

then Transporter may, upon 48 hours' notice, adjust Operator's

scheduled receipts and deliveries over the remainder of the

calendar month in order to maintain a balance of receipts,

deliveries and nominations.

(d) Delivery Point Operators will be allowed to trade imbalances

occurring during the month with other Delivery Point Operators

that are subject to this Rate Schedule. All imbalance trading must

be effected through the nomination of mid-month, make-up volumes.

To facilitate imbalance trading, Transporter will provide for the

posting of Delivery Point Operators' imbalances, based upon the

best information available, on the EBB upon request.

5. Unauthorized Overrun Penalty

On any day during Operational Flow Order conditions, when a Delivery

Point Operator takes gas in excess of the Daily Limit applicable to

a delivery point(s), such Delivery Point Operator, in addition to the

Transporter's other applicable tariffed rates and charges, will be

subject to an Unauthorized Overrun Penalty charge of fifteen dollars

($15.00) per Dth plus any Unauthorized Overrun charges and penalties

billed to Transporter by the connecting upstream pipeline(s). The

Daily Limit shall be specified for each delivery point in an

Operational Flow Order issued pursuant to Article 32 of the General

Terms and Conditions of Transporter's tariff.