Millennium Pipeline Company, L. L. C.

Original Volume No. 1

Effective Date: 02/01/2010, Docket: RP10-272-000, Status: Effective

Third Revised Sheet No. 231 Third Revised Sheet No. 231

Superseding: Second Revised Sheet No. 231

GENERAL TERMS AND CONDITIONS

(Continued)

19. PENALTIES

The penalties set forth in this Section apply to Rate Schedules FT-1,

FT-2, HT-1, BH-1 and IT-1, unless otherwise indicated in this Section or in

individual Rate Schedules. These penalties do not supersede or replace the

obligations of Shipper(s) to resolve any and all imbalances with Transporter

pursuant to Section No. 18 of this FERC Gas Tariff.

19.1 Takes in Excess of Transportation Demand. If Shipper's takes on

any Day under any Agreement exceed 103 percent of the Transportation Demand

thereunder, Shipper will be assessed and pay a penalty based on a price per

Dth equal to the greater of twenty-five dollars ($25.00) or three times the

midpoint of the range of prices reported for "Texas Eastern, M-3 Citygate

Index Price" as published in Platts Gas Daily price survey or any successor

publication thereto, for all such quantities in excess of its Transportation

Demand. This penalty will not apply to authorized overruns pursuant to

Section 3(f) of Rate Schedules FT-1, FT-2, HT-1, and BH-1.

19.2 Failure to Interrupt Service. If Shipper fails to interrupt service

as directed by Transporter pursuant to Section 16 (Interruptions of Service)

of the General Terms and Conditions, and thereby delivers gas to or takes gas

from Transporter in excess of 103 percent of the sum of the lowered Scheduled

Daily Receipt Quantity or lowered Scheduled Daily Delivery Quantity under all

applicable Rate Schedules set by Transporter's interruption order, Shipper

will be assessed and pay penalties based on a price per Dth equal to the

greater of twenty-five dollars ($25.00) or three times the midpoint of the

range of prices reported for "Texas Eastern, M-3 Citygate Index Price" as

published in Platts Gas Daily price survey or any successor publication

thereto, for all such quantities in excess of its Transportation Demand. The

penalties set forth in this Section and in Section 19.1 will not both be

assessed for the same actions by Shipper.

19.3 Failure to Comply with Operational Flow Orders. If Shipper fails to

comply with an Operational Flow Order issued by Transporter pursuant to

Section 17 (Operational Flow Orders) of the General Terms and Conditions, a

penalty will be assessed on all quantities taken or delivered in violation of

that Operational Flow Order based on a price per Dth equal to the greater of

twenty-five dollars ($25.00) or three times the midpoint of the range of

prices reported for "Texas Eastern, M-3 Citygate Index Price" as published in

Platts Gas Daily price survey or any successor publication thereto, for the

days on which the Operational Flow Order is issued.