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. 134 Original Sheet No. 134 : Effective

GENERAL TERMS AND CONDITIONS

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(b) A CDP may not be a primary Delivery Point, but

instead the individual Delivery Point(s) to an LDC and

corresponding individual MDQ(s) at such point(s) shall be specified

in firm transportation Agreements. Unless such deliveries are

nominated by Shipper and confirmed by Horizon, Horizon has no

obligation to deliver on any day under any such Agreement any

volumes in excess of the individual MDQ specified in that Agreement

at a given point. Whenever Horizon determines that operating

conditions only permit deliveries at any individual point(s) equal

to Horizon's obligations, Horizon shall notify the affected

Shippers under such Agreements. Except to the extent of any

authorized overrun, interruptible or secondary point volumes

reflected in confirmed nomination(s), such Shippers shall be

responsible for having the LDC limit its receipts from Horizon at

an individual Delivery Point to: (1) the sum of the individual

MDQs under any firm Agreement containing the point as a primary

point for which Horizon has confirmed nominations to the CDP; or

(2) such other amount as Horizon may designate pursuant to an

Operational Flow Order as provided in Section 10. Any excess takes

at that point by the LDC in those circumstances shall be subtracted

from the aggregated volumes at the CDP, deemed overrun volumes and

allocated consistent with Section 9 among firm Agreements which

have the point as a primary Delivery Point.

(c) Segmenting of a primary path within a specific

zone could result in a physical forward haul which would be in the

opposite direction of the primary path under the original

Agreement. The use of out-of-path secondary Delivery Points in a

specific zone may in certain circumstances result in requests to

schedule volumes in excess of Horizon's system capacity. No

segmentation or use of out-of-path secondary points will be

permitted in a specific zone to the extent such segmentation or use

of out-of-path secondary points could result in a physical forward

haul in the opposite direction from the primary path under the

original Agreement, the scheduling or movement of gas in excess of

Horizon's system capacity or deliveries to CDPs in excess of the

MDQ under the original Agreement. Any Shipper may, however,

request that Horizon allow segmentation and/or the use of out-of-

path secondary points in a specific zone on a case-by-case basis,

specifying the specific circumstances involved. Horizon will

promptly notify Shipper in writing as to whether such segmentation

or use of out-of-path secondary points can be accommodated based on

the specified circumstances without potentially having the type of

adverse operational impact described above on Horizon, on Horizon's

system or on other Shippers. If that determination is made,

Horizon will grant waiver of this Section, limited to the specified