Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 11/02/1998, Docket: RP99- 77-000, Status: Effective

Second Revised Sheet No. 124 Second Revised Sheet No. 124 : Superseded

Superseding: First Revised Sheet No. 124

GENERAL TERMS AND CONDITIONS (Continued)

13.7 Posting of Subscribed and Available Capacity

No later than the first day of the calendar month, Pipeline

will post on its electronic communications system and via EDI to

reflect the capacity which remains unbooked after completion of

the nomination process, and is available for that month on its

mainline transmission system and at each major receipt and

delivery point. Customers may nominate available capacity during

the month in accordance with the procedures set forth in Sections

13.1 and 13.2. If, as the result of changes in nominations or new

nominations received during the Nomination Period, Pipeline

determines that it has additional capacity available on its

system, Pipeline will post the additional capacity on its

electronic communications system and via EDI.

13.8 Scheduling Penalties

Subject to the other provisions of its tariff, Pipeline will

endeavor to make daily delivery at delivery points of

quantities equivalent to those received for the Customer at

receipt points less applicable retainage. To the extent that

Pipeline is able to determine a violation of these scheduling

procedures during the months at any point on its system, Pipeline

will notify all Customers with flowing gas at that point to

bring receipts and deliveries into compliance with nominations.

Except as provided in Section 35 of the General Terms and Conditions,

Pipeline does not propose to charge penalties to any Customer resulting

from monthly imbalances between scheduled receipts and deliveries at

points other than interconnections with interstate pipeline systems,

nor will penalties be imposed respecting a Customer's deliveries to

another interstate pipeline, so long as such interstate pipeline does

not require Pipeline to execute an Operating Balancing Agreement and

the shipper receiving the gas on the interstate pipeline is responsible

for any imbalances.