Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 104 Original Sheet No. 104 : Effective

GENERAL TERMS AND CONDITIONS

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1.18 NEGOTIATED RATE FORMULA

The term "Negotiated Rate Formula" shall mean a rate

formula provision under which Horizon and Shipper have agreed will

be applied to service under Rate Schedule FTS or ITS which results

in a rate where, for all or a portion of the contract term, one or

more of the individual components of such rate exceeds or may

exceed the applicable maximum rate or is less than or may be less

than the applicable minimum rate. Any Agreement entered into which

provides for a rate under Rate Schedule FTS or ITS other than the

applicable maximum rate shall contain a provision setting out the

mutual agreement of the parties, consistent with Commission policy,

as to whether the pricing terms represent a discounted rate or a

rate pursuant to a Negotiated Rate Formula.

1.19 NOMINATION

Nomination" shall mean the written requests for

transportation submitted pursuant to Section 7.

1.20 OPERATIONAL BALANCING AGREEMENT ("OBA")

An OBA is a contract between two parties which

specifies the procedures to manage operating variances at an

interconnect.

1.21 OVERRUN GAS

"Overrun Gas" shall mean those volumes of gas tendered

for transportation by Shipper on any day in excess of its currently

effective Contract Demand or MDQ, to the extent such gas is

scheduled under Section 7 hereof.