Panther Interstate Pipeline Energy, L.L.C.

Original Volume No. 1

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Effective Date: 02/01/2004, Docket: CP03-338-001, Status: Effective

Original Sheet No. 38 Original Sheet No. 38 : Effective

are equal to the Scheduled Quantities, adjusted for Retainage. To

the extent Transporter determines during the course of any month

that Shipper's actual tender of gas to Transporter is differing

from the volumes scheduled, Transporter shall so advise Shipper,

soliciting or directing any nomination changes as Transporter may

deem necessary or prudent under the circumstances, and advising

NGPL of any such change pursuant to Section 9.1(d)(vi).

9.7. Imbalance Settlement. Imbalances shall be determined and settled

monthly.

(a) Within ten (10) Business Days following the end of each

Month, Transporter shall issue to each Shipper a cumulative

imbalance statement for the month. At Shipper's direction,

Transporter shall also post such imbalance statement on its

Website. On or before the eighth Business Day following the

Month, Shippers on Transporter's system may trade imbalances

among themselves, and report the results of any such trades

to Transporter by the means specified in Section 16 of these

General Terms and Conditions. Any imbalances remaining at

the end of this process will be subject to cashout in

accordance with Section 9.7(b), and reflected on the monthly

invoice issued pursuant to Section 10.

(b) Any imbalances between what is nominated and received from

or for the account of an individual shipper at a Panther

Interstate receipt point will be settled between Panther

Interstate and the shipper on a basis that mirrors that to

be used for imbalance settlement between Panther Interstate

and Natural. Where such settlement is by means of cashout,

such cashout shall be valued in accordance with the relevant

price index or indices and pricing tiers used by Natural and

Panther Interstate for cashout of imbalances under the

Operational Balancing Agreement in effect at the delivery

point. Should Natural at any time impose on Panther

Interstate any form of daily or hourly limitation on actual

flows, Panther Interstate will so notify its shippers

directly, invoking as necessary the Operational Flow Order

provisions contained in the General Terms and Conditions of

its tariff.

(c) For volumes received and delivered by Transporter for

Shipper in excess of the scheduled volume, Shipper shall,

unless mutually agreed otherwise, be charged an Overrun Rate

equal to the maximum effective IT rate.