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. 503 Original Sheet No. 503 RATE SCHEDULE SGT (cont'd) (b) An "Excess Overrun Penalty" of $10.00 per MMBtu for all Unauthorized Contract Demand Overrun Quantities on any day in excess of 375 MMBtu. 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. No overrun penalty shall be payable for any day in which the Unauthorized Overrun quantity is less than 250 MMBtu. The payment of a penalty for an Unauthorized Overrun Quantity by a Customer shall not under any circumstances be considered as giving such Customer the right to take an Unauthorized Overrun Quantity nor shall such payment be considered as a substitute for any other remedies available to Texas Gas or any or 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. Texas Gas shall have the right, without obligation, to waive, on a non- discriminatory basis, any Nominal Overrun Penalty for an Unauthorized Overrun if, on the day when the Unauthorized Overrun was taken, deliveries to Texas Gas' other customers were not adversely affected by the taking of such Unauthorized Overrun or if Texas Gas' pipeline operations, including gas storage operations, were not impaired thereby. Texas Gas must waive any Excess Overrun Penalty if the Unauthorized Overrun occurs in a non-critical situation and does not cause operational problems. Texas Gas shall be obligated to waive any penalty for an Unauthorized Overrun Quantity: 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.7. Election of Rate Schedule Refer to Section 8.6 of the General Terms and Conditions of this tariff.8. Reimbursement of Fees and Taxes Customer shall reimburse Texas Gas for all fees, if any, required by the Commission or any regulatory body related to service provided under this Rate Schedule, including