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. 474 Original Sheet No. 474

GENERAL TERMS AND CONDITIONS

(Continued)

51. OPERATIONAL CONTROLS (Continued)

51.1 (d) Variance Notice Tolerance Percentage. Seller shall determine, at its sole

discretion, the Variance Notice Tolerance Percentage it deems appropriate to

improve the particular operating situation. However, the Variance Notice

Tolerance Percentage for each affected Buyer shall not be less than 5% of that

affected Buyer's confirmed nominated quantity or 1000 dt whichever is greater.

(e) Variance Notice Penalty. Each party to which a Variance Notice is directed

shall pay a charge calculated by multiplying the quantity outside of the

Tolerance Percentage by the highest weekly Reference Spot Price for the current

month (as set forth in Section 37.1(a) of the General Terms and Conditions)

applicable to the affected Zone(s), for each day of that party's noncompliance

with the Variance Notice. The Variance Notice Penalty collected shall be

distributed pursuant to Section 54 of the General Terms and Conditions.

51.2 Imbalance Makeup Notices (IMN). Imbalance Makeup Notices will be used to correct

imbalances Due To or Due From Buyers or OBA Parties. Seller shall determine in its

sole judgment that an IMN is necessary to avoid an operating condition which could

jeopardize the operational flexibility of the system. The balance subject to the IMN

shall be the cumulative month-to-date imbalance on all firm and interruptible services

and Operational Balancing Agreements. Seller may issue Imbalance Makeup Notices to

address adverse operating conditions system wide, in an affected area, or at

individual points.

(a) Seller shall state in its IMN the notice type, which shall be either an:

(i) Imbalance Makeup Notice Due From Buyer or OBA Party - An IMN Due From

Buyer or OBA Party will be issued when Seller determines that the use of

an IMN is needed to correct an imbalance Due From Buyer or OBA Party.

The notice shall require Buyers or OBA Parties to reduce their

cumulative monthly imbalance over the time period specified in the IMN

(minimum of three (3) Gas Days, one of which must be a business day) to

no greater than the Imbalance Makeup Notice Tolerance Percentage defined

in Section 51.2(d) below. The difference between the tolerance level

and the actual imbalance level on the date stated in the notice shall be

subject to the Imbalance Makeup Notice Penalty in Section 51.2(e) below.

This notice may direct all or some Buyers or OBA Parties (affected

party) to comply with the notice; or

(ii) Imbalance Makeup Notice Due to Buyer or OBA Party - An IMN Due To Buyer

or OBA Party will be issued when Seller determines that the use of an

IMN is needed to correct an imbalance Due To Buyer or OBA Party. The

notice shall require Buyers or OBA Parties to reduce their cumulative

monthly imbalances over the time period specified in the IMN (minimum of

three (3) Gas Days, one of which must be a business day) to no greater

than the Imbalance Makeup Notice Tolerance Percentage defined in Section

51.2(d) below. The difference between the tolerance level and the

actual imbalance level on the date stated in the notice shall be subject

to the Imbalance Makeup Notice Penalty in Section 51.2(e) below. This

notice may direct all or some Buyers or OBA Parties (affected party) to

comply with the notice.