Granite State Gas Transmission, Inc.

Fourth Revised Volume No. 1

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

Original Sheet No. 143 Original Sheet No. 143

GENERAL TERMS AND CONDITIONS

(Continued)

32. Imbalance Netting and Trading

(a) Definitions. For purposes of this Section 36 the

following definitions shall be applicable:

(1) "Operational Impact Area" is the term used to

describe Transporter's designation of the largest possible area(s)

on its system in which imbalances have a similar operational

effect.

(2) "Netting" is the term used to describe the process

of resolving imbalances for Shipper within an Operational Impact

Area. There are two types of Netting: (a) summing is the

accumulation of all imbalances above any applicable tolerances for

Shipper or agent; and (b) offsetting is the combination of

positive or negative imbalances above any applicable tolerances

for Shipper or agent.

(b) Month-end Imbalances.

(1) Transporter shall allow Shipper (including agents

of Shipper) to net imbalances within the same Operational Impact

Area on and across service agreements with Shipper and to trade

imbalances within the same Operational Impact Area.

(2) Transporter shall provide Shippers the ability to

post and trade imbalances until at least the close of the

seventeenth (17th) business day of the month.

(3) Transporter shall provide Shippers the ability to

view and, upon request, download posted imbalances.

(4) Imbalances to be posted for trading should be

authorized by Shipper.

(5) Authorizations to post imbalances that are received

by Transporter by 11:45 a.m. (C.T.) should be effective by 8:00

a.m. (C.T.) the next business day. Imbalances previously

authorized for posting should be posted on or before the ninth

(9th) business day of the month.

(6) Transporter is not required to post zero

imbalances.

(7) Netting, posting, and trading of imbalances shall

be accomplished based upon Transporter's current method for

accounting for imbalances.

(8) Transporter shall enable the imbalance trading

process by: receiving the Request for Imbalance Trade, receiving

the Imbalance Trade Confirmation, sending the Imbalance Trade

Notification, and reflecting the trade prior to or on the next

monthly Shipper Imbalance.

(9) When trading imbalances, Shippers shall specify a

quantity.

(10) Imbalance trades can only be withdrawn by the

initiating trader and only prior to the confirming trader's

confirmation of the trade. Imbalance trades are considered final

when confirmed by the confirming trader and effectuated by

Transporter.

(11) After receipt of an Imbalance Trade Confirmation,

Transporter shall send the Imbalance Trade Notification to the

initiating trader and the confirming trader no later than twelve

(12) noon (C.T.) the next business day.

(12) To account for any imbalances after imbalance

trading, where Transporter associates such imbalance with a

service agreement, Shipper and Transporter shall agree to

designate one of Shipper's valid service agreements in the

Operational Impact Area where the original imbalance occurred, for

such purpose.