Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 06/01/2003, Docket: RP03-409-000, Status: Effective

Second Revised Sheet No. 164 Second Revised Sheet No. 164 : Effective

Superseding: First Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS

(CONTINUED)

23.2 Transporter's Use.

(a)The initial Transporter's Use (%) will be calculated based

upon appropriate engineering principles. After one year of

operation and each June 1 thereafter commencing in 2005,

Transporter's Use (%) will be redetermined by dividing

Transporter's projection for the next 12 Months beginning

June 1 of fuel usage and any lost and unaccounted-for gas

by Transporter's projection of applicable deliveries for

the account of Shippers for the next 12 Months beginning

June 1. This percentage will go into effect on June 1.

Transporter may file interim proposals between annual

filings subject to approval by the Commission.

(b)Pursuant to Section 23.3, Transporter shall maintain a

separate System Balancing Adjustment account. This account

shall be credited for all sales of excess fuel collected

under Transporter's Use, debited for all purchases for

Transporter's Use and further adjusted for the operational

activities enumerated in Section 23.3(a).

23.3. System Balancing Adjustment. In order to maintain an

operational system balance on its system, Transporter will

calculate a system balancing adjustment ("SBA") charge.

(a) Transporter's SBA balance shall be the sum of:

(1) The net annual system cashout balance determined in

accordance with Section 8 of the General Terms and

Conditions and OBA cashouts;

(2) The net Transporter's Use Adjustment balance,

determined in accordance with Section 23.2 of the

General Terms and Conditions;

(3) Penalty revenues credited pursuant to Sections 24.1(a),

24.1(b), 24.2, and 24.3 of the General Terms and

Conditions; and

(4) Any other account balance as may be approved by the

FERC.