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. 232 Original Sheet No. 232 : Effective

GENERAL TERMS AND CONDITIONS

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(b) In issuing Operational Flow Orders to correct

problems with either too much gas or insufficient gas being

received vis-a-vis deliveries, Horizon will generally follow the

following sequence, to the extent there is sufficient time:

(1) Horizon will require all Shippers out of

balance to the detriment of the system to balance their Agreements.

(2) Horizon will seek voluntary action from

Shippers, subject to the Shipper and Horizon negotiating adequate

compensation.

(3) Horizon will interrupt interruptible services

if that will restore system flexibility prior to issuance of

generally applicable Operational Flow Orders or curtailment of firm

services. This step will be taken when Shippers are failing to

comply with previously issued Operational Flow Orders or when

Horizon cannot identify which Shippers are creating the problem.

(c) Notice of an Operational Flow Order will be posted

on DART, and will be the first item shown on the bulletin board

feature of DART. Horizon will endeavor to post the notice on DART

before 4:00 p.m. Central Time or otherwise will endeavor to notify

Shippers via DART by 4:00 p.m. Central Time that they should check

DART again at a specified later time to see whether an Operational

Flow Order will be in effect for the next day. Horizon must attempt

to give actual notice of an Operational Flow Order via telefax or

telephone (provided a Shipper has given the numbers to Horizon as

required in Section 34.1) at least four (4) hours prior to the

start of the day before an Operational Flow Order will be effective

as to a Shipper. Such notice shall specify the anticipated duration

of the Operational Flow Order. An Operational Flow Order will be

effective at the start of a day and will continue until the end of

the day and through the end of successive days until Horizon

notifies Shippers on DART that the Operational Flow Order has been

lifted.

(d) If any Shipper fails to comply with an Operational

Flow Order [other than those described in subsection (e) below]

during any period which is not a Critical Time, it shall be subject

to a penalty of $5.00 per Dth times any volume of gas by which it

deviated from the requirements of the Operational Flow Order. A

Shipper shall be exempt from such a penalty under this Section 34.6

to the extent the Operational Flow Order requires action beyond