Transcontinental Gas Pipe Line Company, LLC

Fourth Revised Volume No. 1

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

Original Sheet No. 416 Original Sheet No. 416

GENERAL TERMS AND CONDITIONS

(Continued)

25. MONTHLY IMBALANCE RESOLUTION (Continued)

25.7 Trading Fee for OBA Imbalances: When an OBA Party trades across zones within an OIA,

the OBA Party holding a positive OBA Imbalance shall pay Seller 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 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 percentages do not

apply to any backhaul portion of a trade. The trading fee and trading 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 IT rates and fuel retention percentages are assessed subject to

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

25.8 Final Resolution of OBA Imbalances: If an OBA Party has an OBA Imbalance remaining

after the close of the Trading Period, Seller and the OBA Party shall resolve the

resulting OBA Imbalance in accordance with the procedures set forth in the OBA. The

imbalance resolution provisions of an OBA that are negotiable are limited to: (1) the

option to choose for final resolution of imbalances either cash out only, in-kind with

a cash out option, or all in-kind; (2) the percentage that will be returned in-kind if

the option to resolve imbalances in-kind with a cash out option is chosen for final

imbalance resolution; (3) alternate cash out prices using different Reference Spot

Prices and/or publications; and (4) whether or not the OBA may trade imbalances

consistent with Section 25.6 above.

If an OBA Party agrees to the all in-kind imbalance resolution procedure and that OBA

Party fails to resolve imbalances in-kind and such remaining imbalance quantity is

greater than 1,000 dt (including any unresolved imbalances from previous month(s)) by

the 17th business day of the month following the production month, the OBA Party will

pay a fee equal to the cumulative imbalance quantity remaining at the end of the 17th

business day multiplied by one times the "first day of service" PAL charge plus twenty

nine times the "each consecutive day of service" PAL charge as set forth on currently

effective Sheet No. 36 of this Tariff. Payment of the fee does not absolve the OBA

Party of its obligation to resolve any imbalance in-kind. Any revenues received in

association with this fee shall be accounted for as part of Seller's imbalance cash

out program, pursuant to Section 15, herein.

25.9 All balancing shall be based on the zone of receipt within an OIA. Buyer or OBA Party

may nominate transactions (in accordance with Section 28 of the General Terms and

Conditions) during the month to correct imbalances in the zone within an OIA.

Seller's ability to receive or deliver imbalance quantities shall be dependent upon

Seller's physical operations, and Seller is under no obligation to allow receipt or

delivery of such quantities for resolution of imbalances if it determines, in its sole

opinion, such activity would jeopardize pipeline operations.