Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 11/01/2003, Docket: RP02-153-003, Status: Suspended

Second Revised Sheet No. 153 Second Revised Sheet No. 153 : Suspended

Superseding: First Revised Sheet No. 153

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 Interactive Website 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.

11.7 THIRD PARTY BALANCING

At any time during the term of its firm Agreement(s) on

Horizon, a firm Shipper may request that Horizon enter into a Third

Party Balancing Agreement. A Third Party Balancing Agreement is a

contract executed by Horizon, the firm Shipper and one or more third

parties which agree to manage imbalances of that Shipper under specified

firm Agreement(s) on Horizon. Horizon will enter into a Third Party

Balancing Agreement, subject to the following conditions:

(a) The third party provider(s) must obtain all

requisite regulatory approvals of any service (certification, approval

of tariffs, establishment of rates, etc.) which is being relied upon to

perform the imbalance management;

(b) The Third Party Balancing Agreement must be

executed by Horizon, the firm Shipper and any third party performing

imbalance management. The Third Party Balancing Agreement must allow

the third party imbalance management to be integrated into Horizon's

operations.