Mojave Pipeline Company

Second Revised Volume No. 1

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

First Revised Sheet No. 251 First Revised Sheet No. 251

Superseding: Original Sheet No. 251

GENERAL TERMS AND CONDITIONS

(Continued)

13. Fuel and L&U (Continued)

(a) Operational Sales and other credit activity shall be all credit

activity, including imbalance cashouts with shippers and/or

operators, calculated on a monthly basis for the current

reimbursement period. Operational Sales information will

reflect actual quantities and dollar amounts received during

the current reimbursement period.

(b) Operational Purchases and other debit activity shall be all

debit activity, including imbalance cashouts with shippers

and/or operators, calculated on a monthly basis for the current

reimbursement period. Operational Purchases information will

reflect actual quantities and dollar amounts paid during the

current reimbursement period.

(c) Line pack and net system balance activity equals the cumulative

system balance activity at the beginning of the month, plus or

minus current month activity to obtain a cumulative system

balance activity at the end of the month. Current system

balance activity is comprised of increases or decreases in line

pack and increases or decreases to system imbalance activity in

that month. The cumulative month system balance activity is

valued at the Average System Spot Price.

(d) Net fuel and L&U retention is calculated as the difference

between actual fuel burned and fuel retained, and actual L&U

experienced and L&U retained during the current reimbursement

period.

(e) Other gas costs are those quantities and amounts related to

system balancing incurred during the collection period.

(f) Capitalized line pack is gas added to the system as a result of

maintenance and/or construction activity to maintain system

pressure. When such quantities are purchased, Transporter

will value the quantities at the actual price paid. The

purchased quantity associated with such capitalized linepack

will be included as both a source and disposition of gas for

purposes of computing the Fuel, Linepack and Gas Balance

adjustment. If capitalized line pack is reflected in a month

when no purchases occurred for system maintenance, such

quantities will be valued at the Average System Spot Price.

(g) Prior period adjustments to the data elements described in

13.9(a), 13.9(b), 13.9(c), 13.9(d), 13.9(e) and 13.9(f) will be

accounted for in the month in which such adjustments physically

occurred, if such adjustments fall during the review period.

Otherwise such accounting adjustments will be included in

subsequent period reviews.