Venice Gathering System, L. L. C.

Original Volume No. 1

Effective Date: 06/01/2002, Docket: RP00-536-001, Status: Effective

First Revised Sheet No. 94 First Revised Sheet No. 94 : Effective

Superseding: Original Sheet No. 94

GENERAL TERMS AND CONDITIONS

(Continued)

deliveries to VGS' other Customers, then VGS may assess a penalty of $1.00 per

Dth multiplied by the amount that Customer's Receipt Point volumes (less

Unaccounted For Gas quantities) are in excess of Customer's nominated and

confirmed Delivery Point volumes for each Day VGS' Critical Day is in effect.

8.5 Operational Flow Orders

VGS shall have the right to issue Operational Flow Orders (OFOs) in the

event that (1) conditions exist that threaten or could threaten the safe

operations or system integrity of VGS' System, or (2) corrective actions are

necessary to maintain pipeline operations at pressures required to provide

efficient and reliable firm transportation service. While the issuance of an

OFO would likely be the result of a major weather event such as a hurricane or

tropical storm or the failure of pipeline facilities, other potential events

include but are not limited to conditions affecting adequacy of supplies,

i.e., for mainline injection points, line pack, etc., and conditions affecting

VGS' ability to manage the system "in balance." VGS will determine, in its

reasonable judgment, the circumstances that will result in the issuance of an

OFO. The issuance of an OFO will depend on the quantities of gas confirmed

and scheduled, the point(s) where the actual receipts or deliveries deviate

from confirmed and scheduled quantities, whether an OBA is governing the

allocation at the point(s), and the relationship of these individual factors

to the general system operations on any given day. OFOs will identify the

situation to be addressed and shall, to the extent possible, identify specific

actions to be taken by Customer stated in terms of an hourly gas flow level

and a length of time the OFO shall be in effect. VGS will minimize the use of

OFOs, and when possible, direct an OFO to the specific party(ies) creating the

operating condition. Unless due to circumstances beyond VGS' control or

reasonable ability to foresee, OFOs will be issued prior to 9:00 A.M. Central

Clock Time to be effective at 9:00 A.M. Central Clock Time the following day.

In addition to the 24 hour notice requirement of this Section 8.5, VGS shall

post on its EBB, with as much advance warning as is reasonably practicable,

information regarding the operational variables that give, or will in the

future give, rise to issuance of an OFO, and VGS will provide updates

regarding the expected duration of an OFO based on those variables. Within a

reasonable time period following the termination of an OFO, VGS shall post on

its EBB a report detailing the factors requiring the issuance and termination

of an OFO. OFOs affecting a number of Customers on all or any portion of VGS'

System will be posted on VGS' Internet Home Page. To the extent that an OFO

is applicable