Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

Effective Date: 03/01/2010, Docket: RP10-322-000, Status: Effective

Original Sheet No. 56 Original Sheet No. 56

RATE SCHEDULE LMS

(Load Management Service)

(Continued)

6. Monthly Imbalances (continued)

(d) Limitation on Penalties - Any imbalances caused by an

event which excuses performance under Article 9 of the General

Terms and Conditions or caused by an action of Transporter,

including providing the Delivery Point Operator inaccurate

imbalance information at points with Electronic Data as set forth

in 6(b) above.

Furthermore, affected Operator(s) shall be exempt from

Transporter's Unauthorized Overrun penalties for any imbalances

associated with complying with an Operational Flow Order (OFO)

issued pursuant to Article 32 of the General Terms and Conditions

of Transporter's Tariff, and shall be provided an additional 30

days to correct such OFO-related imbalance.

(e) Operational Integrity - Nothing in this Section 6 shall

limit Transporter's right to take action as may be required to

adjust receipts and deliveries of gas in order to alleviate

conditions which threaten the integrity of its system, or the

ability of Transporter to transport quantities scheduled by any

Shipper.

7. Reconciliation

Reconciliation of LMS Charges and Penalties - All Daily

Variance charges, Monthly Cash Outs and Unauthorized Overrun

Penalty charges received or paid by Transporter in accordance with

Sections 4, 5, and 6(b) that are in excess of or deficient from

Transporter's costs, including, but not limited to, (1)

transactions with Transporter in accordance with Section 6(b), (2)

imbalance charges and cash outs billed to the Transporter by the

interconnecting upstream pipelines, (3) Transporter's fuel and

loss costs properly allocable to Delivery Point Operators, and (4)

administrative costs associated with this reconciliation, will be

reconciled on an annual basis pro rata based on transportation

imbalance quantities of the Delivery Point Operator. The amounts

received and paid by Transporter will be reconciled with a filing

by November 1 of each year with carrying charges at the Commission-

approved interest rate prescribed in Section 154.501(d) of the

Commission's regulations. Transporter may file interim

reconciliations between such annual reconciliations.