Central Kentucky Transmission Company

Original Volume No. 1

Effective Date: 05/01/2006, Docket: CP05- 48-002, Status: Effective

Original Sheet No. 182 Original Sheet No. 182 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

19.4 Monthly Imbalances. A penalty of $0.25 per Dth shall be assessed to

Shipper on any difference between actual cumulative receipts (less

Retainage) and actual cumulative deliveries in excess of 5 percent of

actual cumulative deliveries during a Billing Month.

19.5 Miscellaneous.

(a) All penalties and charges assessed under this Section shall

be paid in addition to the applicable transportation rates and charges,

including any overrun charge.

(b) In the event Shipper seeks to avoid any penalty provided for

in this Section on the grounds that such charge was incurred because of a

force majeure event as defined at Section 15 (Force Majeure) of the General

Terms and Conditions, Shipper shall document such force majeure event to

Transporter. Transporter shall waive penalties to the extent that it

determines that the penalty was caused by a bona fide force majeure event

as defined at Section 15.

receiving or delivering gas on behalf of, as a Replacement Shipper of, or

otherwise for the benefit of Shipper, does not (i) provide the schedules,

allocations, or other data required by this Section, Section 6 (Scheduling,

Nominations and Monitoring Service) or Section 8 (Meter Allocations) of the

General Terms and Conditions, or by any other provision of this Tariff on

or before the due dates scheduled by Transporter, or (ii) provide other

data required by Transporter within two business days after Transporter

requests such data, Transporter shall have the right to impose penalties

based upon the data otherwise available to Transporter, without regard to

actual imbalances. Shipper shall have no right to contest the imposition

of such penalties on the basis that the imbalance levels reflected in the

data available to Transporter are at variance with the actual imbalance

level.

(d) Transporter may waive its right to collect all or any portion

of the penalties assessed against Shipper, provided that any such waiver is

granted in a nondiscriminatory manner.