Gulfstream Natural Gas System, L.L.C.

Original Volume No. 1

Effective Date: 06/01/2006, Docket: RP06-334-000, Status: Effective

Second Revised Sheet No. 165 Second Revised Sheet No. 165 : Effective

Superseding: First Revised Sheet No. 165

GENERAL TERMS AND CONDITIONS

(CONTINUED)

(b) The net SBA balance determined in Section 23.3(a),

through January 31 of the year in which the filing

pursuant to Section 23.3(c) is made will be refunded or

recovered from Shipper pursuant to the procedures in

this Section 23.3. Upon determining the net SBA balance

at the end of the accumulation period, Transporter shall

calculate surcharges or refunds designed to allocate

such balance to Shippers based upon each Shipper's

actual throughput during the twelve-month accumulation

period. A Shipper's net debit or credit for the

accumulation period shall be due and payable sixty (60)

Days after the Commission's acceptance of the filing

pursuant to Section 23.3(c). Notwithstanding the

immediately preceding sentence, if the net SBA balance

results in a surcharge/debit, each Shipper who is

allocated a surcharge/debit shall have the right by

providing notice to Transporter within the sixty (60)-

Day period to elect to pay the surcharge/debit ratably

over the twelve (12)-Month period, commencing with the

first Day of the first calendar month following the last

Day of the sixty (60)-Day period,with interest

calculated for each payment from the end of the sixty

(60)-Day period until the payment is made (at the rate

set forth in Section 154.501(d) of the Commission's

regulations).

thereafter, to establish the SBA refund or surcharge

determined pursuant to the procedures in this Section

23.3.

24. PENALTIES AND PENALTY CREDITING MECHANISM

24.1 Rate Schedule PALS penalties.

(a) Penalty for PALS Non-compliance

In the event that a Shipper incurs a penalty pursuant to

Section 4.1(b) of Rate Schedule PALS, which section is

applicable if a Shipper does not comply with

Transporter's notice given pursuant to Section 4.1(a) of

Rate Schedule PALS to either remove Park service

quantities or to return Loan service quantities,