Trunkline Gas Company, LLC

Third Revised Volume No. 1

Effective Date: 08/01/2003, Docket: RP03-534-000, Status: Effective

Original Sheet No. 240 Original Sheet No. 240 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

5. TRANSPORTATION BALANCING (Continued)

(3) Operational Impact Area

For purposes of this Section 5.2(B), two or more

Transportation Service Agreements shall be deemed to be

within the same Operational Impact Area only if the Gas

transported under the Transportation Service Agreement

during the Month was: (1) delivered within the Field

Zone; or (2) delivered within the market zones (Zone 1A,

Zone 1B, or Zone 2). Under a Transportation Service

Agreement where Gas is delivered in both the Field Zone

and one or more of the market zones during the Month, the

Transportation Service Agreement shall be deemed to be

within the Operational Impact Area in which the greatest

Quantity of Gas was delivered during the Month.

Nothing contained in this Section 5.2(B) shall require

Trunkline to incur a financial loss as a result of netting

and trading excess receipts and excess deliveries or to

continue such netting and trading if doing so would be

inconsistent with the prudent operation of Trunkline's

pipeline system.

The imbalance level for any Transportation Service Agreement

shall be the absolute value of the contract imbalance after

minimizing the imbalance in accordance with Section 5.2(B)

herein divided by actual monthly deliveries. The imbalance

level for a TABS-1 Party or an OBA Party shall be the

absolute value of the monthly contract imbalance divided by

actual monthly deliveries.

(D) Imbalance Due Trunkline

For contract imbalances, after minimization in accordance

with Section 5.2(B) herein, where actual deliveries exceed

actual receipts, less Fuel Reimbursement, Shipper or

party shall pay Trunkline based on the accumulated sum of the

results of the formulas listed below: