Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Substitute Second Revised Sheet No. 149 Substitute Second Revised Sheet No. 149 : Effective

Superseding: First Revised Sheet No. 149

GENERAL TERMS AND CONDITIONS

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10.6 BILLING

(a) In the event Horizon does not have all actual

information by the time the billings are to be sent, Horizon may

bill Balancing Service Charges applicable to non-Critical Times

based on reasonable estimates. Such non-Critical Time Balancing

Service Charges will be assessed or revised as a result of the

receipt or revision of actual information.

(b) During a Critical Time, Horizon and Shippers

shall rely on Horizon's operational data posted on Horizon's

Interactive Website to determine whether a Critical Time Balancing

Service Charge is applicable; provided, however, if a Shipper is

convinced that Horizon's operational data is erroneous and

promptly (by the end of the next business day following the

posting) communicates the error to Horizon, Horizon and the

Shipper shall work to resolve the discrepancy and determine the

appropriate measure of the Shipper's compliance with applicable

tolerances.

General Terms and Conditions, Balancing Service Charges shall be

applied to point operator's account as though point operator were

a Shipper, with percentage variances measured in relationship to

total confirmed nominations and delivery rights under Applicable

Agreements at the Delivery Point.

10.7 All amounts collected by Horizon for penalties,

commencing with December 1, 2003, shall be determined for each

annual period ending December 31 and distributed, through a credit

to current billings wherever feasible, within ninety (90) days

after each December 31, with the first such determination and

distribution being made within ninety (90) days after December 31,

2004. For purposes of this Section 10.7, penalties shall include:

Unauthorized Overrun Charges, Balancing Service Charges, charges

for failure to comply with an Operational Flow Order (including

during a Critical Time) and charges for cashout of imbalances.

Such distribution shall be made as follows:

(a) These amounts shall be used first to compensate

Horizon for any cashout expenses and for any extraordinary out-of-

pocket costs it has incurred (including any compensation Horizon

agreed to provide for voluntary actions) to alleviate the

conditions which were created by the imbalance or the Unauthorized

Overrun or other violation or which resulted in the issuance of an