Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

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Effective Date: 03/01/2004, Docket: RP03-173-002, Status: Effective

First Revised Sheet No. 140 First Revised Sheet No. 140 : Effective

Superseding: Original Sheet No. 140

GENERAL TERMS AND CONDITIONS

(CONTINUED)

(b) Imbalance Due Transporter. In the event a monthly

imbalance is an Imbalance Due Transporter,

Transporter shall charge Cashout Party for such

excess Deliveries plus an allowance for fuel

calculated by multiplying such excess Deliveries by

the applicable Transporter's Use %. If a Cashout

Party's monthly imbalance is in the opposite

direction from the Monthly System Imbalance or is

less than or equal to 5%, the monthly cashout bill

will be based on the average Midpoint price

contemplated in Section 8.7(a). The Monthly System

Imbalance will be calculated at the same time the

initial cashout bill for that Month is generated. If

a Cashout Party's Monthly Imbalance is greater than

5% and is in the same direction as the Monthly System

Imbalance, the monthly cashout bill will be based on

the accumulated sum of the results of the formulas

listed below such that, and until, the total Monthly

Imbalance is fully accounted for:

Imbalance

Level Factor Applicable Cashout Price

0% - = <5% 1.00 average Midpoint

> 5% - =<10% 1.10 (High Common x quantity > 5%) + level above

>10% - =<15% 1.20 (High Common x quantity >10%) + levels above

>15% - =<20% 1.30 (High Common x quantity >15%) + levels above

>20% - =<25% 1.40 (High Common x quantity >20%) + levels above

>25% 1.50 (High Common x quantity >25%) + levels above

For purposes of determining the appropriate cashout

Factor, Cashout Party's imbalance level shall be

determined by taking the lower of (a) the level of

imbalance supplied pursuant to Section 25.2, or (b)

the imbalance computed by comparing (i) the Deliveries

at the Delivery Point and (ii) the Receipts at the

Receipt Point and by dividing the amount of the excess

Deliveries by the Receipts less the Transporter's Use.

For OBA imbalances that are resolved pursuant to this

Section 8, the calculation of cashout charges relating

to excess Deliveries shall also include a

Transportation imbalance charge, which shall be

calculated by multiplying the excess Delivery quantity

by the actual weighted average of all applicable Usage

Rates owed on all quantities of Gas delivered during

the Month to that OBA Party.