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. 3000 Original Sheet No. 3000 GENERAL TERMS AND CONDITIONS Section 1818. Operational Flow Orders (a) (i) Texas Gas shall have the right to issue operational flow orders (OFO) as specified in this Section which require actions in order to alleviate conditions which threaten the integrity of Texas Gas' system, to maintain pipeline operations at the pressures required to provide an efficient and reliable transportation service, to have adequate gas supplies in the system to deliver on demand (including injection of gas into the mainline, providing line pack, and injecting gas into storage in the right quantity at the right place and time), to maintain service to all Customers and for all services, and to maintain the system in balance for the foregoing purposes. Texas Gas will take all reasonable actions to minimize the issuance and adverse impacts of OFOs or other measures taken to respond to adverse operational events on its system. For example, before issuing an OFO Texas Gas will attempt to identify specific customers causing a problem and attempt to remedy those problems. Where operationally feasible, service to interruptible customers will be suspended prior to issuing an OFO interrupting service to firm customers. (ii) All quantities tendered to Texas Gas and/or taken by Customer on a daily basis in violation of Texas Gas' operational flow orders shall constitute unauthorized receipts or deliveries for which a charge shall be assessed. The daily charge for failure to comply with an OFO shall be computed based on a price per MMBtu equal to the greater of $50.00 per MMBtu or three times the Highest Average Weekly Price during a particular month for spot gas supplies "Delivered to Pipeline" at Gulf Coast, Onshore Louisiana, and at North Louisiana as contained in the table "Gas Price Report" of the publication "Natural Gas Week." The weeks to be used in determining each month's Highest Weekly Average Price shall include all weeks that such publication is issued within that calendar month plus the first week of the next calendar month. Customers will be exempt from penalties on imbalances that result from complying with an OFO. A reasonable make-up period will be allowed to correct OFO created imbalances. Upon an operational flow order becoming effective as specified in the operational flow order or as provided in this Section 18 of the General Terms and Conditions, Customer, OBA party, or operator of the facilities connecting with Texas Gas' facilities shall be permitted the time stated in the OFO, or such lesser time as is required to protect the integrity of Texas Gas' system, to make adjustments in compliance with the operational flow orders. If Customer, or operator of such interconnect, adjusts its tenders or takes within such notice period then no charge, as provided for herein, shall be assessed. Customers will be exempt from penalties on imbalances caused by Texas Gas' failure to deliver gas to a pipeline interconnect as nominated or a customer's reliance on incorrect imbalance status information provided by Texas Gas. Firm customers will also be exempt from penalties for failure to comply with an OFO to the extent such failure to comply is attributable to the firm customer's inability to bump an interruptible customer.