Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 237 Original Sheet No. 237 : Effective

GENERAL TERMS AND CONDITIONS

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(b) To the extent insufficient Penalty Funds were

initially received to compensate the Complying Shippers pursuant

to subsection (a)(2) above, Horizon will bill each Shipper that

either failed to comply with the Critical Time Operational Flow

Orders or curtailment orders or obtained relief during a Critical

Time under the Emergency Curtailment Relief provision of Section 3

such additional amounts (not to exceed one hundred percent of the

Penalty Funds already billed that Shipper) as are necessary to

fully compensate the Complying Shippers pursuant to subsection

(a)(2) above.

34.11 STANDARDS

(a) In issuing Operational Flow Orders or taking

other operational control action under this Section, Horizon shall

apply consistent and objective engineering and operational

criteria to define the overall operational integrity of the system

and acceptable pressure levels to be protected, to evaluate the

imminent nature of any threat to these factors, and to determine

what steps are necessary to preserve such factors. Such criteria

may be changed from time to time as operating experience

indicates.

(b) In applying this Section, Horizon shall operate

its system on a non-discriminatory manner, without regard to the

source of supply, the identity or nature of any Shipper or the

identity of any entity tendering or receiving gas except as

otherwise explicitly provided herein.

34.12 LIABILITY

Horizon shall not be liable to any person for the

manner in which it operates its system, or for any diversion of

gas or capacity rights or any other adverse consequences to such

person which may result from its actions, provided that Horizon's

actions were undertaken in furtherance of and in accordance with

this Section and provided further that such adverse consequences

are not attributable to Horizon's negligence or misfeasance.