Horizon Pipeline Company, L.L.C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

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

Original Sheet No. 107 Original Sheet No. 107 : Effective

GENERAL TERMS AND CONDITIONS

----------------------------

2. EXPANSION OF THE SYSTEM

Horizon may be willing to expand the System to make

capacity available to a Shipper under Rate Schedule FTS whenever

such an expansion is determined by Horizon to be economically and

technically feasible, subject to the following conditions:

(a) Horizon does not have adequate unutilized capacity

in the System to accommodate the Nominations or Requests for

Capacity of existing and prospective Shippers accepted by Horizon

pursuant to this Tariff.

(b) Horizon shall solicit existing customers for

Turnback Capacity to serve an expansion request; provided,

however, that solicitation of Turnback Capacity will only occur in

instances where redundant construction could be avoided through

the use of Turnback Capacity and that Horizon is not required to

accept any Turnback Capacity that would generate less revenue

and/or is not economically beneficial to Horizon. The solicitation

shall be posted on DART for a minimum of ten (10) days. While

Horizon's solicitation is non-binding, any response to a request

for Turnback Capacity accepted by Horizon shall be binding upon

Shipper in the event Horizon proceeds with the expansion project.

(c) Horizon has received an executed revised Agreement

from each existing and prospective Shipper requesting capacity

such that the total Contract Demands of all existing and

prospective Shippers under executed Agreements substantially

equals the prospective new System capacity.

(d) The nature, extent and timing of facilities

required for any expansion shall be at the sole discretion of

Horizon.

(e) Horizon receives acceptable assurance that Shipper

requesting additional capacity meets the credit criteria outlined

herein.