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. 152 Original Sheet No. 152 : Effective

GENERAL TERMS AND CONDITIONS

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In calculating the AMIP, the WIPs will be based on the prices

reported in the issue of "Natural Gas Intelligence" dated on or

after Horizon's nomination deadline for first of the month service

for that month, and the subsequent issues dated prior to Horizon's

nomination deadline for the following month's first of the month

service.

(d) Following the ten (10) day period for offsetting

imbalances, Shippers with remaining imbalances shall pay Horizon

or will be credited with the appropriate cashout amounts.

(e) In the event "Natural Gas Intelligence" ceases to

publish entirely or fails to publish the index prices listed in

subsection (c) above, the following procedures shall apply in

determining a month's AMIP:

(1) Should, in any given week, "Natural Gas

Intelligence" fail to publish the index price used in determining

that week's WIP, there will be no WIP for that week used in

determining the month's AMIP.

(2) Should, in a given month, there be less than

two WIP's available for the AMIP calculation, the following

alternate AMIP procedures will apply: The AMIP will be defined as

the arithmetic average of:

(i) The closing price for the NYMEX

natural gas futures contract applicable to the month in which the

imbalance was created (i.e., the price at which that month's

contract "went off the board"); and

(ii) The individual daily closing prices

for the following month ("spot month" or "near month") NYMEX

natural gas contract during the month in which the imbalance was

created, up to and including the day the "spot month" contract

"goes off the board."