Mojave Pipeline Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 244 Third Revised Sheet No. 244

Superseding: Second Revised Sheet No. 244

General Terms and Conditions

(Continued)

10. Imbalance Management (Continued)

(a) Transporter shall determine the imbalance quantity applicable

to each terminated/Inactive Service Agreement.

(b) The cash-out price will be the highest price for imbalances due

Transporter and the lowest price for imbalances due Shipper,

determined as the Bidweek Price published in Natural Gas

Intelligence Bidweek Survey - Spot Gas Prices as the Southern

California Border Average price, of either (i) the month in

which the imbalance occurred; or (ii) the month in which the

imbalance(s) is reconciled.

(c) Cash-outs owed to the Shipper or Transporter will be the

amount determined by multiplying the imbalance for the

terminated/ Inactive Service Agreement by the cash-out price.

10.7 Transporter shall pay or credit the account, as appropriate, of

Shipper for any cash-out amounts due Shipper for a terminated

Service Agreement/Inactive Service Agreement. Shipper shall pay

Transporter for any cash-out amounts due Transporter. Upon payment

of the appropriate cash-out amounts, the imbalance amounts for the

affected Service Agreement will be reduced to zero.

(a) If the Shipper has an existing agreement with Transporter,

credit will be given through invoice. If the Shipper does not

have an existing agreement with Transporter, credit will be

by cash.