Trunkline Gas Company, LLC

Third Revised Volume No. 1

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

Original Sheet No. 242 Original Sheet No. 242 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

5. TRANSPORTATION BALANCING (Continued)

actual deliveries, less Fuel Reimbursement, Trunkline shall

purchase from Shipper or party such excess receipts.

Trunkline shall pay Shipper based on the accumulated sum of

the results of the formulas listed below:

Imbalance

Level Factor Results

0% - < 5% 1.00 (price x Quantity < 5%)

> 5% - <10% .90 (price x Quantity > 5% and <10%)

>10% - <15% .80 (price x Quantity >10% and <15%)

>15% - <20% .70 (price x Quantity >15% and <20%)

>20% - <25% .60 (price x Quantity >20% and <25%)

>25% .50 (price x Quantity >25%)

The amount due Shipper for each imbalance level shall be

determined by multiplying the corresponding imbalance level

factor by the lowest weekly Spot Index Price, as determined

in Section 5.2(F) herein, for the Month in which the contract

imbalance was incurred times the Quantity within each

imbalance level.

(F) Spot Index Price

Each week a Spot Index Price will be derived from the average

of the following posted spot prices as published each week in

Natural Gas Week's "Gas Price Report":

(1) Louisiana, Gulf Coast, Onshore, Spot Delivered to

Pipeline;

(2) Texas, Gulf Coast, Onshore, Spot Delivered to Pipeline;

and

(3) Louisiana, Gulf Coast, Offshore, Spot Delivered to

Pipeline.

In the event that these prices are no longer available or

valid, Trunkline will file to change the Tariff and may, at

its discretion, select a representative price in the interim

period, subject to adjustment.