Midwestern Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 11/01/2003, Docket: RP03-618-000, Status: Effective

First Revised Sheet No. 266C First Revised Sheet No. 266C : Effective

Superseding: Original Sheet No. 266C

GENERAL TERMS AND CONDITIONS

23. ALLOCATION AND CREDITING OF PENALTIES (Continued)

23.1 Amounts Invoiced for OFO and PAL Penalties (Continued)

Company shall post on its Informational Posting web site each month the amount

invoiced from non-LMS penalties.

A non-LMS infraction within a given month will not exclude a Shipper from being

an Eligible Shipper for any other month.

23.2 Amounts Invoiced for Daily Imbalance Penalties

All amounts invoiced by Company as payment of Daily Imbalance Charge penalties,

net of incremental administration charges, shall be credited to Eligible LMS

Parties for the month invoiced.

For a given day, Eligible LMS Parties are Parties who have executed LMS-MA or

LMS-PA agreements with Company who did not incur a Rate Schedule LMS related

penalty. An Eligible LMS Party shall receive a pro rata allocation of the net

amount of penalty invoiced for a day based on such Eligible LMS Party's total

Scheduled Quantities for day the penalties are incurred. The resulting daily

allocation will be aggregated and disbursed on a monthly basis to the Eligible

LMS Parties as a credit on their invoice.

Company shall post on its Informational Posting web site each month the amount

of penalties invoiced for the Daily Imbalance Charge and the amount credited to

each Eligible LMS Party.

An LMS infraction on a given day will not exclude an Eligible LMS Party from

being an Eligible LMS Party for any other day within such calendar month.