Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 104 Original Sheet No. 104 RATE SCHEDULE FT (cont'd) circumstances, Customer shall pay the FT overrun rate for such authorized overruns and no penalty shall be assessed. (b) Allowable Variation Notwithstanding anything herein to the contrary, Customer takes between 100% of Contract Demand and 102 percent of Contract Demand shall be considered an allowable variation in the delivery of the Contract Demand and shall not require Texas Gas' prior consent. In such circumstances, the Customer shall pay the FT Overrun Rate for such takes and no penalty shall be assessed. Customer may rely on daily operational information provided by Texas Gas to determine if its takes have exceeded its daily Contract Demand and, if so, whether such excess takes are within 102% of Contract Demand and shall be considered allowable variation. Texas Gas shall use the lesser of operational information or actual data to determine whether Customer's excess takes are allowable variation or unauthorized overrun quantity. (c) Unauthorized Contract Demand Overrun Quantity Customer takes in excess of 102 percent of the Contract Demand on any day, without Texas Gas' prior consent, shall constitute Unauthorized Contract Demand Overrun Quantity. 7.2 Unauthorized Contract Demand Overrun Penalty In any month in which Customer takes Unauthorized Contract Demand Overrun Quantity, Customer shall pay to Texas Gas the following penalties in addition to the charges otherwise payable hereunder: (a) A "Nominal Overrun Penalty" equal to twice the effective FT Overrun Rate for all Unauthorized Contract Demand Overrun Quantities taken on any day over 102 percent of the Contract Demand; and (b) An "Excess Overrun Penalty" of $10.00 per MMBtu for all Unauthorized Contract Demand Overrun Quantities taken on any day in excess of 105% of Contract Demand. In the event a Customer incurs an Excess Overrun Penalty, Texas Gas will credit any amounts collected as a Nominal Overrun Penalty against amounts collected as an Excess Overrun Penalty, so that the total Overrun Penalty collected does not exceed $10.00 per MMBtu for overruns in excess of 105% of Contract Demand. The payment of a penalty for Unauthorized Contract Demand Overrun by a Customer shall not under any circumstances be considered as giving such Customer the right to take unauthorized Contract Demand overrun nor shall such payment be considered as a substitute for any other remedies available to Texas Gas or any of Texas Gas' other customers against the offending Customer for failure to respect its obligation to adhere to the provisions of its contract with Texas Gas.