Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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Effective Date: 12/31/2008, Docket: RP09-158-000, Status: Effective

Original Sheet No. 415 Original Sheet No. 415

GENERAL TERMS AND CONDITIONS

(Continued)

25. MONTHLY IMBALANCE RESOLUTION (Continued)

25.3 Netting and Trading of Transportation Imbalances: For each month, Seller will

separately aggregate Buyer's Transportation Imbalances at the contract level, within

each zone within an OIA. During the Trading Period, Buyer may trade the previous

month's Transportation Imbalances between Buyer's own contract(s) or with other

Buyers' contract(s) within zones or across zones within each OIA. Trading will be

allowed when (i) Transportation Imbalances are traded within the same OIA and (ii) the

resulting trade will reduce the Transportation Imbalance for each Buyer.

Transportation Imbalances cannot be traded with OBA Imbalances. At the end of the

Trading Period, any remaining Transportation Imbalances will be netted for each Buyer

within each zone within an OIA.

25.4 Trading Fee for Transportation Imbalances: When Buyers trade across zones within an

OIA, the Buyer holding a positive Transportation Imbalance shall pay Seller the

applicable trading fee. If the positive Transportation Imbalance being traded is

associated with a firm service contract, Buyer shall pay the applicable firm trading

fee which shall be the mileage component of the currently effective Rate Schedule FT

commodity rate for the zones of trade, excluding the zone of delivery, times the

quantity traded across zones (after Seller retains fuel for the zones of trade

excluding the zone of receipt). If the positive Transportation Imbalance traded is

associated with an interruptible service contract, Buyer shall pay the applicable

interruptible trading fee which shall be the mileage component of the currently

effective Rate Schedule IT rate for the zones of trade, excluding the zone of

delivery, times the quantity traded across zones (after Seller retains fuel for the

zones of trade excluding the zone of receipt). The firm and interruptible trading

fees and the trading fuel retention percentages are included on currently effective

Sheet Nos. 87 and 88 of this Tariff. The trading fee and trading fuel retention

percentage do not apply to any backhaul portion of a trade. The mileage components of

Seller's Rate Schedule FT commodity rate and IT rate, and fuel retention percentages

may change from time to time as reflected in Seller's FERC Gas Tariff filed with and

approved by the Federal Energy Regulatory Commission. To the extent Seller's Rate

Schedule FT commodity rates, IT rates and fuel retention percentages are assessed

subject to refund, the trading fee shall also be assessed subject to refund.

25.5 Final Resolution of Transportation Imbalances: If Buyer has an imbalance remaining

after the close of the Trading Period and final netting, as set forth in Section 25.3

above, such imbalance will be cashed out in accordance with the cash out provisions

set forth in Section 37.1 of the General Terms and Conditions.

25.6 Netting and Trading of OBA Imbalances: For each month, Seller will separately

determine for each OBA agreement, the net Receipt Point OBA Imbalances and net

Delivery Point OBA Imbalances, within each zone within an OIA; provided however,

Receipt Point OBA Imbalances and Delivery Point OBA Imbalances will not be netted

together. For those points that are bi-directional, the net direction of the receipt

and delivery quantities transported each month will determine whether the point will

be identified as an OBA receipt point or an OBA delivery point. During the Trading

Period, trading of the previous month's netted OBA Imbalances will be allowed within

each OIA between OBA parties unless otherwise provided in the OBA. Trading will be

allowed when (i) OBA Imbalances are traded within the same OIA and (ii) the resulting

trade will reduce the OBA Imbalances for each OBA party; provided however, Receipt

Point OBA Imbalances cannot be traded with Delivery Point OBA Imbalances.