Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

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

GENERAL TERMS AND CONDITIONS

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

nomination will be treated as being secondary outside of the path. Subject

to the availability of point capacity and to ordinary nomination

procedures, deliveries may be made at the same point for a forward haul on

the upstream segment and a backhaul of the downstream segment. The forward

haul will have priority at the point if the point capacity is not adequate.

At the point of segmentation, deliveries may be nominated on the upstream

segment up to MDQ and receipts may be nominated on the downstream segment

up to MDQ, subject to constraints on point capacity and ordinary scheduling

procedures and priorities.

(f) (1) Subject to the remainder of this Section

7.14(f), the Releasing and Replacement Shipper involved in a segmented

release may each choose primary Receipt Points and primary Delivery Points

(within the applicable zones if Horizon institutes zones) equal to their

respective contract MDQs after the release; provided, however, that the

resulting segments may not overlap. If the points chosen are within the

path of the original Agreement and do not involve changing a primary point

thereunder, the point designations shall be accepted, subject only to the

availability of firm capacity at those points and agreement on the rate

applicable at the new primary points. If one or more points are outside

the path of the original Agreement, then Horizon's generally applicable

point change procedures and Section 7.14(f)(2) shall apply. If firm

capacity is not available at the point or to the point, the Shipper may

designate such points (not overlapping with other segments) in defining a

segment, but the points shall have secondary point priority (either in-path

or out-of-path, as applicable).

(2) Subject to the availability of firm capacity at

the new point(s) and Horizon's general applicable point change procedure, a

Replacement Shipper or a Subreplacement Shipper may change the primary

Receipt or Delivery Points listed in the Agreement being released to new

primary point(s) if the Original Shipper and Horizon agrees to amend the

Agreement to change the primary Receipt and Delivery Point accordingly;

provided, however, that the consent of the original Shipper shall not be

required in the case of a permanent release by that original Shipper of its

firm capacity. Horizon shall not be obligated to reserve firm capacity to

reinstate the former primary points upon expiration of the capacity

release. Except in cases where the capacity determination is unusually

complex, Horizon anticipates that it will respond to such a point change

request hereunder within five (5) Business Days or less.

(3) Any primary point established under this

subsection 7.14(f) which was not a primary point under the original

Agreement and is not reflected in a point change which affects the original

Agreement will have the same priority as any other primary point, but shall