Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

Effective Date: 05/21/2002, Docket: CP00- 6-004, Status: Effective

Original Sheet No. 107 Original Sheet No. 107 : Effective

GENERAL TERMS AND CONDITIONS

(CONTINUED)

1.35 The term "Monthly System Imbalance" shall mean the total

imbalances for Transporter's system for the Month,

calculated as the difference between (i) allocated

quantities received for the Month, as determined in

accordance with Section 7 of the General Terms and

Conditions, adjusted for Transporter's Use, and (ii)

allocated quantities delivered for the Month, as

determined in accordance with Section 7.

1.36 The term "Negotiated Rate" shall mean a rate or rate

formula for computing a rate for service under a single

Agreement.

1.37 The term "Net Present Value" ("NPV") shall mean the

discounted cash flow of expected revenues per Dekatherm

of the applicable service for a term of up to twenty

(20) years, using the interest rate set forth in Section

154.501 of the Commission's Regulations.

1.38 The term "Netting" shall be used to describe the process

of resolving imbalances for a Shipper within an

Operational Impact Area. There are two types of

Netting:

a. Summing is the accumulation of all imbalances above any

applicable tolerances for a Shipper or agent.

b. Offsetting is the combination of positive and negative

imbalances above any applicable tolerances for a Shipper

or agent.

1.39 The term "North American Energy Standards Board" or

"NAESB" shall mean the accredited organization

established to set standards for certain natural gas

industry business practices and procedures.