Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

First Revised Sheet No. 235 First Revised Sheet No. 235 : Suspended

Superseding: Original Sheet No. 235

GENERAL TERMS AND CONDITIONS

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34.9 APPLICABILITY OF ACTIONS

(a) In exercising its authority pursuant to

Sections 34.4 through 34.8, Horizon shall generally direct its

actions to Shippers in the following sequence, to the extent such

actions and/or sequencing will tend to alleviate the situation to

be addressed:

(1) First, to any Shipper which is causing

disruption due to its failure to maintain receipts and deliveries

in balance or to match physical flows with nominated receipts or

deliveries;

(2) Second, to any Shipper which has failed or is

failing to take action to anticipate a change in demand (i.e., a

temperature sensitive LDC or end user failing to respond to changes

in weather);

(3) Third, to any Shipper which is operating in a

manner which conflicts with sound operational practices in relation

to Horizon's system; and

(4) Lastly, to all other Shippers.

(b) Notwithstanding subsection (a), any Shipper which

has taken voluntary action to alleviate a situation shall be

exempted from further action hereunder to the extent of its

voluntary action until Horizon has applied equivalent measures to

other Shippers.

(c) Operational Flow Orders shall require action

within any Shipper class proportionate to appropriate and relevant

parameters, such as applicable contract quantities or current or

recent flowing gas volumes.