ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 03/01/2007, Docket: RP04-435-006, Status: Effective

Fifth Revised Sheet No. 117A Fifth Revised Sheet No. 117A : Effective

Superseding: Fourth Revised Sheet No. 117A

GENERAL TERMS AND CONDITIONS

(Continued)

affected party as a result of such failure; and (b) subject to a

penalty of twenty-five dollars ($25.00) for each Dekatherm of Gas

associated with the quantity of Gas that does not comply with such

OFO. Notwithstanding anything to the contrary in this Section

8.10, (a) if Shipper is required to make a nomination pursuant to

an OFO, unless critical circumstances dictate otherwise, no

damages and/or penalties will be assessed unless Shipper is given

the opportunity to correct the circumstances giving rise to the

OFO, and (b) Transporter shall waive otherwise applicable

penalties for failure to comply with an OFO to the extent the

Shippers' actions are consistent with the following, if: (1)

Transporter has provided in advance and on a non-discriminatory

basis notice to Shippers that Transporter has determined that

specific actions that may otherwise be deemed non-compliant with

an OFO will benefit Transporter's Pipeline System; or (2) if a

Shipper, prior to taking action that would otherwise be non-

compliant with the OFO, has discussed such action with Transporter

and receives authorization from Transporter to take such action.

8.11 Reimbursement. If Transporter receives Gas pursuant to an OFO

issued under Section 8.4, above, then Transporter shall pay the

full commodity rate applicable to the primary gas purchaser,

whether higher or lower than Transporter's Cashout price. If

Transporter receives Gas pursuant to an OFO issued under Sections

8.5 and 8.6, Transporter shall pay the recipient of the OFO for

such quantity of Gas at the applicable contract price.

Notwithstanding the foregoing, any party supplying Gas to

Transporter under Sections 8.4, 8.5 and 8.6, above, shall have the

right to receive such imbalance in kind, delivered to such

recipient by no later than the Month subsequent to the Month in

which the OFO was issued.

8.12 Transporter Cost Recovery for OFO. Transporter shall direct bill

pipeline transmission charges incurred as a result of an OFO to

all firm Shippers on a system-wide basis. Gas purchase costs and

quantities incurred as a result of an OFO shall be channeled

through Transporter's Cashout program pursuant to Section 15 of

these General Terms and Conditions.

8.13 Transporter Liability for OFOs. Transporter shall not be liable

to any person for any costs, damages or other liability associated

with the issuance of, or the failure to issue, any OFOs, other

than such costs to be paid by Transporter according to Section

8.11, above; provided, however, Transporter shall be liable for

acts of negligence or undue discrimination, such standards to be