Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 01/01/2002, Docket: RP02- 72-000, Status: Effective

Original Sheet No. 237 Original Sheet No. 237 : Effective

GENERAL TERMS AND CONDITIONS

6. PAYMENTS (Continued)

6.4 Prior Period Adjustments

Prior period adjustments are reported by production date, but they do not have

to be invoiced separately by Production Month - nor is each Production Month a

separate paper invoice page. [3.3.16/v1.0]

Prior period adjustment time limits shall be 6 months from the date of the

initial transportation invoice with a 3-month rebuttal period, excluding

government-required rate changes. This standard shall not apply in the case of

deliberate omission or misrepresentation or mutual mistake of fact. Parties'

other statutory or contractual rights shall not otherwise be diminished by this

standard. [3.3.15/v1.0]

No imbalance penalty shall be imposed when a prior period adjustment applied to

the current period causes or increases a current month penalty. [2.3.31/v1.1]

The statement of account shall report outstanding balances by invoice.

[3.3.21/v1.2]

7. POSSESSION OF GAS

7.1 Control and Possession

Unless otherwise provided in the service agreement or applicable Rate Schedule,

as between Company and Shipper, Shipper shall be deemed to be in exclusive

control and possession of the gas to be transported (i) prior to receipt by

Company at the Receipt Point(s), (ii) after receipt by Company, when the gas is

in the custody of Shipper or Shipper's designee for separation, processing or

other handling, and (iii) after delivery by Company at the Delivery Point(s);

otherwise, Company shall be in exclusive control and possession of the gas.

The party in exclusive control and possession of the gas shall be responsible

for all injury or damage caused thereby to any third party.

7.2 Indemnification

In the absence of gross negligence or willful misconduct on the part of

Company, Shipper waives any and all claims and demands against Company, its

officers, employees or agents, arising out of or in any way connected with

(i) the quality, use or condition of the gas after delivery from Company for

the account of such Shipper, (ii) any losses or shrinkage of gas during or

resulting from transportation hereunder, and (iii) all other claims and demands

arising out of Company's performance of its duties hereunder.

8. OPERATIONAL FLOW ORDERS (OFO)

8.1 Circumstances Warranting OFO

Company shall have the right to issue OFOs as specified in this Section that

require actions by Shippers/Balancing Parties in order (i) to alleviate

conditions that threaten the integrity of Company's system, (ii) to maintain

pipeline operations at the pressures required to provide efficient and reliable

transportation services, (iii) to have adequate gas supplies in the system to

deliver on demand, (iv) to maintain service to all firm Shippers, and (v) to

maintain the system in balance for the foregoing purposes.