Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 117 Original Sheet No. 117 : Effective

GENERAL TERMS AND CONDITIONS

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(d) Horizon shall redetermine the priority of each

Shipper under this Section 3.4 and reallocate capacity hereunder

on a daily or such other periodic basis as is necessary for

Horizon to recognize the priority of new Shippers or any changes

in the priorities of existing Shippers, to assure service to its

firm Shippers and to accommodate the operational requirements of

its System. The priorities hereunder shall be applied on an

Agreement-by-Agreement basis.

(e) An Agreement under Rate Schedule ITS will

include all Receipt and all Delivery Points available on

Horizon's System. A Shipper for whom Horizon has agreed to

construct a new point shall be given a priority for that point

based on the date of that Shipper's request for that point.

Notwithstanding the foregoing, a Shipper may not utilize a point

for which there is no regulatory authorization to receive or

deliver gas under the Agreement.

3.5 CAPACITY CONSTRAINTS

If Horizon experiences a capacity constraint on a

portion of its System or at specific points, it shall (to the

extent practicable), apply the scheduling and curtailment

provisions hereof, for both firm and interruptible services, only

to those Shippers with service affected by that portion of the

System or at those points. Horizon shall endeavor to restrict

curtailment to as limited a geographical area, number of Shippers

and services as reasonably feasible, given the operational

capabilities of its System.

3.6 OVERRUN PRIORITIES

(a) Service within MDQ under any firm Rate Schedule

shall have priority over all overrun services.

(b) Subject to subsection (d), the priority for

authorized Overrun Gas shall be as set out in subsection

3.4(b)(1).