Kentucky West Virginia Gas Company

Third Revised Volume No. 1

Effective Date: 11/01/1997, Docket: RP97-104-005, Status: Effective

First Revised Sheet No. 134 First Revised Sheet No. 134 : Superseded

Superseding: Original Sheet No. 134

GENERAL TERMS AND CONDITIONS (Continued)

16. OPERATIONAL FLOW ORDERS

16.1 Generally

An operational flow order is an order issued to alleviate

conditions, inter alia, which threaten or could threaten

the safe operations or system integrity, of the Pipeline's' system

or to maintain operations required to provide efficient and

reliable firm service. Whenever the Pipeline experiences these

conditions, any pertinent order shall be referred to as an

Operational Flow Order ("OFO"). In the event that Pipeline

determines, in its sole discretion, that in order to permit the

continued operation of all or part of its system a quantity of

gas must be received or delivered at any point or location on its

system, and that such operating requirement cannot be accomplished

using the facilities and gas supply under Pipeline's control in

the time period necessary, Pipeline may issue OFOs which shall

require specified action on the part of Customers, and which shall

be applied on a nondiscriminatory basis to all quantities flowing

at the designated points on Pipeline's system at which action is

required.

16.2 Operational Flow Order Condition in Customer Service Agreements

All firm and interruptible transportation and/or gathering Service

Agreements will contain a provision guaranteeing Pipeline's right to

issue an OFO directly to any supplier, operator, transporter or

owner of Customer's gas. Customer may take direct responsibility for

ensuring compliance with an OFO, or at its option, may use an agent,

which may be Pipeline, for ensuring compliance. Such election must be

made prior to executing the Service Agreement, and may be changed upon

reasonable notice to the Pipeline.

16.3 Notice

Each Customer shall designate one or more persons for Pipeline

to contact on a 24-hour per day, 365 days a year basis. If

Pipeline invokes its rights under this section, it will

provide actual notice of OFOs to the affected Customers by telephone

or facsimile transmission, containing the following information:

(i) The point(s) or location(s) on Pipeline's system at which

Pipeline requires action in order to maintain system

operations;

(ii) The conditions which necessitate the issuance of the OFO

and specific responses required from the affected parties.