Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 145 Original Sheet No. 145 : Effective

GENERAL TERMS AND CONDITIONS

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

unauthorized overrun, the applicable maximum Overrun Charge shall

be an Unauthorized Overrun Rate of $10.00 per Dth multiplied by the

number of Dth of unauthorized overrun gas; provided, however, that

such charge may be discounted on a non-discriminatory basis to any

level between zero and $10.00. Only a single Overrun Charge shall

apply to any volume even though it may represent a overrun of more

than one restriction under the applicable Rate Schedule.

(2) If the volumes allocated to any FTS or ITS

Agreement fail to equal the confirmed nomination under such

Agreement, the following charges [in addition to any charges

applicable under subsection (1)] shall apply based on the degree of

variance between actual deliveries, and Shipper's rights and/or

confirmed nominations (no charge hereunder shall apply for

variances at Receipt Points):

VARIANCE CHARGE

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

0% to 5% No additional charges

5% to 10% $0.10/Dth

10% to 20% $0.20/Dth

20% to 50% $0.50/Dth

Above 50% $1.00/Dth

(3) Tiered Balancing Service Charges under

Sections 10.2, 10.3 and 10.4 shall be applied on a graduated basis,

i.e., the specified charge shall apply only to that portion of the

variance which is within the corresponding tier between its lower

and upper percentage boundaries (variances within a range greater

than the lower boundary and equal to or less than the upper

boundary) and not to any portion of the variance falling within

other tiers. Horizon may discount charges under Sections 10.2,

10.3 and 10.4 on a basis which is not unduly discriminatory to a

level between zero and the applicable variance charges.

(b) A Shipper subject to any Overrun Charges and/or

Charge(s) under subsection (a) shall, in addition, pay an

applicable transportation commodity charge on takes from Horizon in

excess of applicable rights and shall be obligated to return any

volumes taken from Horizon in excess of volumes delivered to

Horizon. The volume of any imbalance remaining at the end of the

month will be cashed out under Section 11 of these General Terms

and Conditions.