Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 153A Original Sheet No. 153A : Suspended

GENERAL TERMS AND CONDITIONS

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(1) Horizon must have the right to call on the

third party provider(s) for the agreed imbalance management on short

notice, within defined parameters, to effectuate necessary operational

changes.

(2) Horizon must be given timely notice of the

nature and level of the imbalance management being provided by the third

party provider(s) pursuant to the Third Party Balancing Agreement on any

day.

(3) The Third Party Balancing Agreement must: (i)

define the operational changes the third party provider(s) will effectuate

to offset the operational effects on Horizon of imbalances at points on the

system covered by the Third Party Balancing Agreement; and (ii) identify

the resources or services which the third party provider(s) will utilize to

implement such changes.

(4) Any third party providing imbalance management

must be able to deliver or receive gas, as applicable, at the prevailing

operating pressure on Horizon's system at the relevant point(s) and the

Third Party Balancing Agreement must so specify.

the firm Agreements and the points to be balanced and must set out the

agreement of the parties as to how imbalances are to be allocated to and

accounted for at the point(s) covered by the Third Party Balancing

Agreement and any limitations on the level of imbalances to be managed

under the Third Party Balancing Agreement.

(d) (1) The physical facilities of the third party

provider(s) (or used by such third party or parties) to perform the

imbalance management must include physical storage facilities and must be

directly connected to Horizon's facilities and the storage facilities must

be in close enough physical proximity to Horizon's system to support, and

of a type capable of supporting, the operational effects necessary to

perform imbalance management, which may require almost instantaneous

operational changes on Horizon.

(2) Bi-directional flow must be available at the

delivery and/or receipt points involved.

(3) The third party provider(s) must have the

ability to get gas onto or off of Horizon's system in order to effectuate a

true physical balancing.