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. 233 Original Sheet No. 233 : Effective

GENERAL TERMS AND CONDITIONS

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Shipper's contract limits under its Agreement with Horizon or if Shipper

has complied within a reasonable range, which range will be specified in

the Operational Flow Order.

(e) In addition to the Operational Flow Orders described in

subsection (a) above, Horizon may issue Operational Flow Orders as follows:

(1) In order to improve system operations, Horizon may

require a Shipper which has a variance of twenty percent (20%) or more

between actual deliveries to Horizon at a Receipt Point and the confirmed

nomination at that Receipt Point to conform the deliveries to the confirmed

nomination as of the day that commences with the effectiveness of the

Operational Flow Order.

(2) Horizon may also require Shippers to keep any

variances between actual flows and confirmed nominations at all of the

Receipt Points or Delivery Points in a Rate Zone under all of a Shipper's

Agreements, which are to the detriment of Horizon's system, within a ten

percent (10%) tolerance. If a Shipper ("Swing Shipper") agrees to keep all

other Shippers at a Delivery Point (or, if applicable, a Central Delivery

Point) whole with their nominations, such other Shippers' confirmed

nominations and actual takes at that point will be included in the total

confirmed nominations and the total actual deliveries of the Swing Shipper

at all Delivery Points in the Rate Zone for purposes of determining the

Swing Shipper's variance.

Shippers that fail to comply with such Operational Flow

Orders described in this subsection (e) shall be subject to a penalty of

$10.00 per Dth outside of a ten percent (10%) tolerance.

(f) A Shipper shall not be subject to overrun penalties and

charges from Horizon or Balancing Service Charges with respect to any

action taken in reasonable conformance with an Operational Flow Order

issued by Horizon during a Critical or non-Critical Time.

(g) Any Receipt or Delivery Point where the variance between

the total confirmed nominations and actual flows is less than 500 Dth per

day or where Horizon does not have either daily metering or access to such

information shall be exempt at all times, including during a Critical Time,

from Operational Flow Orders requiring that gas flows be conformed to

nominations or to some percentage of nominations.