Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 153 Original Sheet No. 153 : Effective

GENERAL TERMS AND CONDITIONS

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11.4 OPERATIONAL DATA VS. ACTUALS

In determining the cashout tier applicable under

Section 11.3 above, Horizon will utilize the operational data posted on

its DART as of the end of the month or the actual flow volumes,

whichever results in a lower cashout tier.

11.5 PRIOR PERIOD ADJUSTMENTS

Any imbalances for a month that are booked after the

transportation for that month has been billed will be cashed out at 100%

of the AMIP in effect during the month the imbalance occurred.

11.6 PURCHASE AND SALE OF GAS

Horizon is not providing a supply service under any

Rate Schedule of this Tariff. Without limitation of the foregoing,

Horizon may buy and sell gas to the extent necessary to maintain System

pressure, to implement the cashout procedures under this Section 11 and

to perform other functions in connection with providing transportation

service and operating its system. The point of any such sale shall

occur at Receipt Points on a Shipper Agreement. Such sales shall be

authorized pursuant to Horizon's blanket sales certificate. Nothing

herein shall impose on Horizon any obligation to provide a supply

function to any of its Shippers.