Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 12/23/2004, Docket: RP05- 88-000, Status: Effective

Fourth Revised Sheet No. 63 Fourth Revised Sheet No. 63 : Effective

Superseding: Third Revised Sheet No. 63

6.2 Balancing Penalty

(a) Daily Balancing. If on any day Shipper delivers to

"Transporter Input Quantities (less applicable Measurement

Variance/Fuel Use Quantities) at the Receipt Point(s) which are

in excess of or deficient by the greater of 400 Dth or four

percent (4%) of the Equivalent Quantities taken by Shipper at the

Delivery Point(s), Transporter shall provide Shipper forty-eight

hours notification, or such lesser period of time as reasonably

required by Transporter to protect the integrity of its system,

to initiate corrective action. In the event Shipper fails to

initiate the corrective action mutually agreed upon by Shipper

and Transporter, Transporter shall charge Shipper the Maxi-

mum Interzone Interruptible Transportation Service Commodity Rate

per Dth for any receipts which are in excess or deficient by the

greater of four percent (4%) or 400 Dth of Deliveries. Shipper

shall have 45 days after notification to reduce the cumulative

imbalance to zero.

(b) Monthly Balancing. At least seven (7) days prior

to the end of each month Transporter will notify Shipper if it

appears that Receipts (less Measurement Variance/Fuel Use

Quantities) will be in excess of or deficient by four percent

(4%) or more of Deliveries. In the event Shipper fails to agree

upon the appropriate corrective action to be implemented with

Transporter's Commercial Operations Department within two (2) Gas

Days after notification, and/or fails to implement the corrective

action agreed upon, Transporter shall charge Shipper the Maximum

Interzone Interruptible Transportation Service Commodity Rate

per Dth for any Receipts (less Measurement Variance/Fuel Use

Quantities) which are in excess of or deficient by four percent

(4%) of Deliveries.

Imbalances for any month that become apparent

after the time for notice has expired shall be considered

as an imbalance for the month following the month in which

the imbalance became apparent.