Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 07/01/1993, Docket: RS92- 18-002, Status: Effective

Original Sheet No. 38G Original Sheet No. 38G : Superseded

GENERAL TERMS AND CONDITIONS (Continued)

waiver of such penalty by Pipeline, shall under any circumstances

be considered as giving any such customer the right to take

unauthorized overrun; nor shall any such payment or waived payment

be considered as a substitute for any other remedies available to

Pipeline or any other Customer against the offending Customer for

failure to adhere to its obligations under the provisions of this

Section 14.

14.10 Disposition of Penalty

In December of each year, if Pipeline has collected during the

prior 12 month period, overrun penalty charges, as provided in

Section 14.9 hereof, Pipeline shall disburse the amount collected

to those of its Customers which on any day during the twelve

months ending the preceding October failed to receive the

quantity of natural gas to which they were entitled under their

contracts with Pipeline and which in good faith they would have

purchased from Pipeline, but were unable to because of the taking

of unauthorized overrun quantities by another Customer within the

meaning of Section 14.9 of this Section. Such disbursement shall

be computed at the rate of ten dollars ($10.00) per dth, or such

lesser rate as will distribute proportionately among Customers

entitled to payments hereunder all overrun penalties collected by

Kentucky West under Section 14.9 of this Section during the

above-described twelve-month period, for each dth of gas which

such Customer failed to receive as hereinabove provided.