Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 12/01/2003, Docket: RP02-153-005, Status: Effective

Substitute Original Sheet No. 135A Substitute Original Sheet No. 135A : Effective

GENERAL TERMS AND CONDITIONS

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for volumes in excess of the MDQ under the original Agreement in the area

of overlap shall be applied as follows: (i) if a Shipper is nominating

or flowing within the primary path under its segment, overrun shall not

apply to that segment so long as such Shipper is within its MDQ on that

segment and any overrun shall be assigned to the segment on which Shipper

is nominating and flowing outside its path; (ii) if a Shipper is

nominating or flowing in excess of its MDQ on a segment under the

segmented release, the Shipper shall be assessed overrun based on the

volume in excess of its MDQ; and (iii) where the Shipper on each segment

is within its MDQ, but is nominating on a secondary out-of-path basis so

as to create an overlap in nominated paths, and aggregate nomination by

the Releasing and Replacement Shipper in the area of overlap are in

excess of the original contract MDQ, then except as provided in (i) and

(ii), overrun charges will be assessed to the Releasing Shipper unless

the release specifies that such overrun charges are to be assessed to the

Replacement Shipper.

(d) The segment furthest upstream in relation to

direction of flow for the primary path under the Agreement being

segmented shall have the pooling point. Notwithstanding the prior

sentence, Horizon shall allow both the upstream and downstream segments

to have access to the pooling point provided that the pooling point is

the only delivery point which may be used during the period of

segmentation by the upstream segment with respect to the segmented

capacity and the pooling point is the only receipt point which may be

used during the period of segmentation for the downstream segment with

respect to the segmented capacity. These restrictions on the points

which may actually be used in the segmentation must be part of the

capacity release posting or the nomination provided to Horizon, as

applicable, in connection with the segmentation. This restriction on

points relates solely to the points which may be used on the upstream and

downstream segment during a period of segmentation as a condition of

access to the pooling point by both upstream and downstream segments and

is not predicated on the specific primary point rights under the

Agreement being segmented.

(e) The direction of flow for path segments must be the

same direction of flow as for the original path unless Horizon agrees

otherwise or unless such a change in direction of flow is consistent with

the Agreement. A Shipper may segment a backhaul, but such segmentation

shall be subject to review by Horizon on a case-by-case basis as to

whether a backhaul on each resulting segment is operationally feasible.

The Shipper (or Replacement Shipper in the case of a release) may

nominate service at Receipt and Delivery Points for the path segment that

results in a reverse flow from the original path; however, such a