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. 404 Original Sheet No. 404 RATE SCHEDULE NNS (cont'd) Texas Gas shall be obligated to waive any penalty for Unauthorized Contract Demand Overrun: (a) when such overrun is taken under circumstances beyond the control of Customer due to emergency conditions on Texas Gas' facilities, or (b) when such overrun is due to accident to or breakage of pipelines, machinery or equipment of the Customer; provided, however, Customer shall promptly and diligently take such action as may be necessary and practicable under the then existing circumstances to repair or otherwise remedy the situation and furnish Texas Gas satisfactory evidence that such accident or breakage was not due to Customer's gross negligence. Whenever Texas Gas waives the penalty for Unauthorized Contract Demand Overrun, Customer shall pay Texas Gas the daily portion of the monthly demand rate per MMBtu of the Unauthorized Contract Demand Overrun quantity in addition to the commodity charge payable hereunder. The daily portion of the monthly demand rate is set forth on currently effective Sheet No. 26 of this tariff.7. Seasonal Quantity Entitlement Overrun Charge and Nominal Penalty 7.1 If Customer and Customer's Replacement Shipper(s) take quantities of gas during the five-month period commencing November 1 of each year in excess of the Winter Season Quantity Entitlement, or during the seven-month period commencing April 1 of each year in excess of the Adjusted Summer Season Quantity Entitlement, such excess shall constitute Seasonal Quantity Entitlement Overrun. For all gas taken in excess of 100 percent of the applicable Seasonal Quantity Entitlement, there shall be a charge consisting of the daily portion of the monthly demand rate for the applicable zone in addition to all other charges payable hereunder. The daily portion of the monthly demand rate is set forth on currently effective Sheet No. 26 of this tariff. 7.2 In addition to the charge contained in Section 7.1 above and all other applicable charges, if Customer takes quantities of gas in any season in excess of 102% of the applicable Seasonal Quantity Entitlement, there shall be a penalty of twice the effective FT Overrun Rate; provided, however, such seasonal penalties shall be charged only for unauthorized seasonal overruns. Texas Gas shall have the right, without obligation, to waive, on a non- discriminatory basis, any penalty under this Section 7.2 for Seasonal Quantity Entitlement Overrun if, as a result of such overrun, deliveries to Texas Gas' other Customers were not adversely affected or if Texas Gas' pipeline operations, including gas storage operations, were not impaired thereby.