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. 107 First Revised Sheet No. 107 : Effective

Superseding: Original Sheet No. 107

GENERAL TERMS AND CONDITIONS

(Continued)

11. RESOLUTION OF IMBALANCES

All imbalances accrued by Customer under its Service

Agreement(s) shall be resolved through the following

mechanism.

11.1 Calculation of Monthly Imbalances

VGS will calculate the imbalance for each Service

Agreement by determining the difference between the total

quantities of gas allocated for the account of Customer at

the Receipt Points, which shall be based on actual delivered

quantities during the Month of flow and the total quantities

of gas nominated by Customer for delivery at the Delivery

Point each month, as adjusted for by the Unaccounted For Gas

percentage as authorized by Sheet No. 4 and posted on posted

on VGS' Home Page. All imbalances accrued by Customer under

each of its Service Agreement(s) will be combined to derive

a net underdelivery or overdelivery imbalance for resolution

purposes. VGS will provide Customers with an imbalance statement

at the same time as or prior to the delivery of invoices for

transportation services.

11.2 Trading of Imbalances

Customers will be permitted to trade similarly situated

imbalances with other Customers. To trade an imbalance, Customer

must notify VGS in writing on or before the twenty-fifth (25th)

day of the month following the month in which the imbalance was

incurred. Such notice should include the following information

for the trading Customers: name, the service agreement numbers,

the quantity being transferred, a certification that Customer has

taken all steps necessary to effect the trade with the other

party, and an authorized signatory for both parties.