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. 39 Original Sheet No. 39 : Effective

9.8 Imbalance Trading and Netting

(a) Shippers may net and/or trade imbalances incurred on

Transporter's system (defined to be the Operational Impact

Area), provided such trade(s) will not have an adverse

impact on Transporter's operations and transportation

revenues. Netting of imbalances includes summing, which is

the accumulation of all imbalances above any applicable

tolerances, and offsetting, which is the combination of

positive or negative imbalances above any applicable

tolerances. All imbalances incurred by a Shipper will be

aggregated and netted at Shipper's most upstream Primary

Receipt Point.

(b) Shippers must nominate imbalance trades. Such nominations

will be processed consistent with section 9.1. Transporter

shall not be liable for any losses incurred by a Shipper if

a Shipper is unable to complete an imbalance trade once it

has been nominated.

(c) Transporter will allow the trading of imbalances until the

close of the seventeenth business day of the month. To

account for any imbalance remaining after imbalance trading,

where Transporter associates such imbalance with a contract,

a Shipper and Transporter will agree to designate one of the

Shipper's valid contracts for such purpose.

10. INVOICING, PAYMENTS, AND PENALTY REVENUE CREDITING

10.1 Monthly invoicing date: Transporter shall prepare invoices

(including imbalance statements) on or before the 9th Business Day

of each month following the month of service. Invoices may be

rendered by mail, facsimile or, subject to mutual agreement,

electronically.

10.2 Right of examination: If an invoice is in dispute, Shipper shall

pay the portion not in dispute and provide documentation

identifying the basis for the dispute. Both Transporter and

Shipper shall have the right to examine at any reasonable time the

applicable books and records (or portions thereof) and charts of

the other to the extent necessary to verify the accuracy of any

statement made under or pursuant to the provisions of the gas

service agreement. Upon receipt of a request, the party will

either send the information relevant to the request to the other

party or will provide the requestor the right to review such

information in the requestor's offices.