Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 11/01/2003, Docket: RP02-153-003, Status: Suspended

First Revised Sheet No. 141 First Revised Sheet No. 141 : Suspended

Superseding: Original Sheet No. 141

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.

 

(3) Volumes under Applicable Agreements equal to

available rights to inject gas to the storage point of a qualified

third party pursuant to a Third Party Balancing Agreement held by the

point operator shall next be deemed injected for that day on behalf

of the point operator.

 

(4) To the extent less volumes have been delivered

on any day which are not accounted for by applying steps (1) through

(3), such shortfall shall be allocated for that day to the point

operator's account and shall be subject to charges under Section 10

of these General Terms and Conditions [it being understood that the

allowable balancing service to be provided without additional charge

under Section 10 has already been provided under step (2) above].