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. 141 Original Sheet No. 141 : Effective

GENERAL TERMS AND CONDITIONS

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(c) In the event that volumes delivered by Horizon

under Applicable Agreements at any Delivery Point are less than

the sum of confirmed nominations at the point on any day, the

delivery sequence for that day shall be as follows:

(1) First, confirmed nominations under all

Applicable Agreements shall be deemed delivered on that day.

(2) Of the volumes nominated but not delivered,

volumes equal to up to the percentage of the confirmed nominations

under step (1) which corresponds to the percentage for the

Balancing Service Charge tier under Section 10 of these General

Terms and Conditions for which no additional charge is assessed

under then prevailing conditions shall be allocated to the point

operator's account on any day (such allocation absorbs any

allowable balancing service provided without additional charge

under Section 10 of these General Terms and Conditions), but only

to the extent necessary to account for deliveries on that day. The

point operator's account is available for the allocation of

volumes hereunder on any day except during a Critical Time or as

otherwise provided in an Operational Flow Order. Moreover,

allocations under this step (2) to a point operator's account

shall not be made to the extent such an allocation would be

inconsistent with an Operational Flow Order nor shall any such

allocation be made during a Critical Time. The cumulative volumes

for operator's account hereunder over any month may not exceed two

percent (2%) of cumulative confirmed nominations for that month or

any lesser amount specified in an Operational Flow Order. The

determination related to the prior sentence shall be made at the

end of the month and any volumes in excess of the 2% cashed-out.

Such cashout shall be implemented without offset, netting,

trading, in accordance with Section 11.3 of these General Terms

and Conditions, except that imbalances from 2% to 5% shall be

cashed-out in the "5% to 10%" tier.