Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-396-000, Status: Effective

Original Sheet No. 193C Original Sheet No. 193C : Effective

GENERAL TERMS AND CONDITIONS

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(3) All recalled capacity notices must indicate

whether penalties will apply for the gas day for which quantities are

reduced due to a capacity recall.

(d) QUANTITY ALLOCATION

In the event of an intra-day capacity recall,

Horizon shall determine the allocation of capacity between the

Releasing Shipper and the Replacement Shipper(s) based upon the

Elapsed Prorata Capacity (EPC). In any recall notification provided

to Horizon, the quantity should be expressed in terms of the adjusted

total released capacity entitlements based upon EPC. EPC means that

portion of the capacity that would have theoretically been available

for use prior to the effective time of the intraday recall based upon

a cumulative uniform hourly use of the capacity. The amount of the

capacity allocated to the Replacement Shippers(s) should equal the

original released capacity less the recalled capacity that is

adjusted based upon the EPC. Horizon shall not be obligated to

deliver in excess of the total daily contract quantity of the release

as a result of any recall. The service flexibility available to

either the Releasing Shipper or the Replacement Shipper for the

subject capacity shall not be less as a result of the recall.

(e) REPUTS

When capacity is recalled, it may not be reput for

the same gas day.

(f) DISPUTES

In the event of a dispute between the Releasing

Shipper and any other person as to the validity of any recall or

reput, or the status of the holder of the capacity rights, Horizon

shall be entitled to conclusively rely on any notice provided by the

Releasing Shipper. The Original Shipper, Replacement Shipper and/or

Subreplacement Shipper involved in any such dispute shall indemnify

and hold Horizon harmless from any costs, damages or expenses

relating to Horizon's reliance on such notice.