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. 442 Original Sheet No. 442

GENERAL TERMS AND CONDITIONS

(Continued)

37. CASH OUT PROVISIONS (Continued)

37.1 (h) At the end of the trading period, if an OBA Party's imbalance in a zone within

an OIA is "Due To" OBA Party, the OBA Party's imbalance quantity for that zone

shall be cashed out based on tiers beginning with (i) below and progressing

through each subsequent tier until the entire imbalance has been cashed out.

Each tiered imbalance quantity shall be calculated by multiplying the

percentage imbalance, as stated in (i) through (v) below, times OBA Party's

total scheduled quantities. Any imbalance that is equal to or less than 1,000

dt shall be cashed out using the provisions set forth in (i) below.

(i) Imbalance quantities which are equal to or less than a 5% imbalance

shall be multiplied by the applicable "Buy" price; then

(ii) Imbalance quantities which are greater than a 5% imbalance but less than

or equal to a 10% imbalance shall be multiplied by the applicable "Buy"

price multiplied by a factor of 80%; then

(iii) Imbalance quantities which are greater than a 10% imbalance but less

than or equal to a 15% imbalance shall be multiplied by the applicable

"Buy" price multiplied by a factor of 70%; then

(iv) Imbalance quantities which are greater than a 15% imbalance but less

than or equal to a 20% imbalance shall be multiplied by the applicable

"Buy" price multiplied by a factor of 60%; then

(v) Imbalance quantities which are greater than a 20% imbalance shall be

multiplied by the applicable "Buy" price multiplied by a factor of 50%.