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. 144 Original Sheet No. 144 : Effective

GENERAL TERMS AND CONDITIONS

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10. BALANCING SERVICE AND OVERRUN CHARGES

10.1 GENERAL

This Section applies to transportation services provided

under Rate Schedules FTS and ITS. Each Shipper has the obligation to

ensure actual volumes delivered to Horizon at Receipt Points and

actual volumes taken from Horizon at Delivery Points conform to the

volumes nominated by the Shipper and confirmed by Horizon each day.

10.2 BALANCING SERVICE AND OVERRUN CHARGES DURING NON-

CRITICAL TIMES

(a) During periods when a Critical Time is not in

effect, if actual receipts and deliveries under an Agreement at a

point on any day do not conform to a Shipper's rights under its

Agreement(s) or to the sum of its confirmed nominations after

receipts and deliveries are allocated consistent with Section 8

or 9 of these General Terms and Conditions, as applicable, the

following Overrun Charges and Balancing Service Charges shall

apply:

(1) In the event that receipts or deliveries

allocated to a Shipper under said Section 8 or 9 at any point or

under any Agreement exceed Shipper's available firm contractual

rights (MDQ), an Overrun Charge shall apply. Specifically, the

Overrun Charges set out herein shall apply to volumes taken or

tendered in excess of MDQ under Rate Schedule FTS. Overrun Charges

applicable to Rate Schedule ITS shall be separately stated in that

Rate Schedule. Overrun volumes shall be deemed authorized overrun

if tendered or taken pursuant to confirmed nominations. In the case

of authorized overrun, as reflected in overrun requests properly

submitted by Shipper and accepted by Horizon (i.e., a confirmed

nomination), the applicable maximum Overrun Charge for

transportation shall be a maximum Authorized Overrun Rate determined

on the same basis as the maximum rate for Rate Schedule ITS (i.e.,

the maximum Authorized Overrun Rate for Rate Schedule FTS would

equal the maximum rate for Rate Schedule ITS) multiplied by the

number of Dth of the authorized overrun gas. Such Authorized Overrun

Rates may be discounted on a non-discriminatory basis to any level

between zero and the maximum Authorized Overrun Rate. In the case of