Mojave Pipeline Company

Second Revised Volume No. 1

Effective Date: 06/03/2010, Docket: RP10-706-000, Status: Effective

First Revised Sheet No. 242A First Revised Sheet No. 242A

Superseding: Original Sheet No. 242A

GENERAL TERMS AND CONDITIONS

(Continued)

10. Imbalance Management

10.1 Imbalance Netting: Netting of imbalances is defined as the

combination of positive and negative contract imbalances for a

Shipper. For purposes of resolving an imbalance on a Shipper's

contracts, Transporter shall net Shipper's firm and interruptible

imbalances, on a non-discriminatory basis, between contracts with

such Shipper.

10.2 Imbalance Trading: Trading is the offsetting of Shipper imbalances

between contracts belonging to different Shippers. Trading will

always have the effect of reducing Shipper's contract imbalances.

To assist Shipper in correcting imbalances, Mojave will permit

Shippers and their agents to trade imbalances with other Shippers

in accordance with this section. If Shipper desires to trade

imbalances, Shipper must consent to Transporter posting Shipper's

imbalance information on Transporter's EBB. During the first ten

days of each month, Transporter will make such imbalance

information from the previous month available on its EBB to all

Shippers. Unless otherwise mutually agreed to by Transporter and

Shipper, Shipper shall have until the close of business on the

third business day prior to the end of the month to trade

imbalances with other Shippers to reduce or eliminate any

imbalances that have occurred during the previous month.

(a) Once Shippers have agreed to trade imbalances, each Shipper

must notify Transporter by submitting to Transporter by

telecopy, or by other means approved by Transporter, a gas

imbalance trading notice indicating the agreement to trade

imbalances and the amount of imbalances to be traded. This

notice to Transporter will be deemed to be the Shipper's

direction to Transporter to make the imbalance trade on the

Shipper's account. If the Shippers' notices coincide,

Transporter will adjust Shippers' accounts to reflect the

imbalance trade.

(b) Shippers are responsible for making arrangements deemed

necessary to finalize and document the imbalance trade.

Transporter shall not be liable for any losses incurred by a

Shipper if a Shipper is unable to complete an imbalance trade

once Shipper has notified Transporter of its desire to make an

imbalance trade.

imbalances for the fee specified in the Statement of Rates, as

negotiated between Transporter and Shipper.