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. 136 Original Sheet No. 136 : Effective

GENERAL TERMS AND CONDITIONS

(CONTINUED)

8. IMBALANCE RESOLUTION PROCEDURES

8.1 For the purposes of this Section 8, "Receipt" or "Receipts"

shall mean quantities of Gas allocated pursuant to Section

7 of these General Terms and Conditions, net of

Transporter's Use, and "Delivery" or "Deliveries" shall

mean quantities of Gas allocated pursuant to Section 7.

After the end of each Service Month, Transporter shall

render to Cashout Party a statement detailing any imbalance

between Monthly Receipts and Monthly Deliveries under all

of Cashout Party's Transportation Agreements ("Imbalance

Statement"), subject to Transporter's Billing and Payment

provisions contained in Sections 9 and 10 of these General

Terms and Conditions.

8.2 Cumulative Daily Transportation Imbalances shall be subject

to the following imbalance resolution procedures.

(a) Definition of Transportation Imbalance:

"Transportation Imbalance" shall mean the difference

between a Shipper's allocated Receipts and allocated

Deliveries under any firm or interruptible Agreement.

All imbalances will be calculated on a daily basis

and designated to be at the applicable Delivery

Point.

(b) Definition of an Imbalance Due Cashout Party: "Due

Cashout Party" shall mean that Deliveries under an

Agreement at the Delivery Point are less than

Receipts at the Receipt Point, adjusted for

Transporter's Use; such difference in quantity is

"Due To" a Cashout Party (or its Agent).

Transporter" shall mean that Deliveries under an

Agreement at the Delivery Point exceed Receipts at

the Receipt Point, adjusted for Transporter's Use;

such difference in quantity is "Due From" a Cashout

Party (or its Agent).