Kentucky West Virginia Gas Company

Third Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-104-001, Status: Effective

First Revised Sheet No. 170 First Revised Sheet No. 170 : Superseded

Superseding: Original Sheet No. 170

GENERAL TERMS AND CONDITIONS (Continued)

occurred, all imbalances will be applied to the service

agreement which is last in the determination of deliveries

under Section 35.1.

a. Monthly Imbalances

Operating conditions may, from time to time, cause a temporary

and unintentional imbalance between the total dth of natural

gas that Pipeline receives under the executed Service

Agreement and the quantities of natural gas that Pipeline

delivers under the executed Service Agreement. The

Pipeline and the Customer shall cooperate to eliminate

any such imbalances. As soon as practicable the Pipeline

shall notify the Customer of such imbalance and

the necessity to take corrective action within the next 48

hours. If necessary to protect the integrity of its system,

Pipeline may require the Customer to take corrective action

within less than 48 hours. In the event the Customer fails to

take corrective action within 45 days from the end of the 48

hour notification period, the Customer shall be subject to the

following monthly imbalance charge provisions:

1. Overdelivery Penalty: Pipeline will notify Customer by the

ninth business day following the close of each month

in which Customer delivered or caused to be delivered more

than 104% of the quantity of gas than was taken from

Pipeline on Customer's behalf. In the event Customer fails

to take or cause to be taken within 45 days of notification

a quantity of gas sufficient to balance deliveries to

Pipeline with the quantities taken from Pipeline, an

imbalance penalty shall be imposed. The imbalance penalty

shall be the retention by the Pipeline at no cost and free

and clear of any adverse claims of any remaining net

balance of overdeliveries in excess of 104% existing at the

end of said 45 day period.

2. Underdelivery Penalty: Pipeline will notify Customer

by the ninth business day following the close of each

month in which Customer took or caused to be taken from

Pipeline quantities which exceed by more than four percent

(4%) the quantities received by Pipeline pursuant to the

provisions of Section 13 of the General Terms and

Conditions of this FERC Gas Tariff. In the event Customer

fails to deliver or cause to be delivered within 45 days of

notification a quantity of gas sufficient to balance

deliveries to Pipeline with the quantity taken from

Pipeline, an imbalance penalty shall be imposed of $10/dth

multiplied by the remaining net balance of underdeliveries