Tuscarora Gas Transmission Company

Original Volume No. 1

Effective Date: 01/20/2004, Docket: RP00-487-003, Status: Effective

Substitute First Revised Sheet No. 46 Substitute First Revised Sheet No. 46 : Effective

Superseding: Original Sheet No. 46

GENERAL TERMS AND CONDITIONS

6. BALANCING, ADHERENCE TO SCHEDULING, AND CONTRACT OVERRUNS

6.1 Shipper's Obligations.

(a) Shipper shall endeavor to monitor and, if necessary, adjust

deliveries and receipts of gas in order to maintain a daily

balance of deliveries and receipts. Transporter shall not be

obligated to receive gas in excess of the Scheduled Input

Quantities, nor shall Transporter be obligated to deliver to

Shipper at the Delivery Point(s) quantities in excess of

Scheduled Equivalent Quantities. Shipper shall maintain

receipts at levels at or below the Maximum Input Quantities

(as adjusted for the Measurement Variance Gas Quantity) and its

Maximum Equivalent Quantities. Transporter will monitor, to

the extent practicable, deliveries and receipts for each

transportation transaction and, based upon information

available, advise Shipper of any imbalance situation which has

occurred or may occur unless corrective action is taken. Upon

notification, Shipper shall endeavor to adjust deliveries and

receipts to avoid any imbalance. Any adjustment to deliveries

and receipts by Shipper, whether or not pursuant to

notification from Transporter, shall be coordinated with

Transporter's Gas Administration Department and shall be in

accordance with the nomination and scheduling procedures

set forth in Section 4 above.

(b) If Shipper fails to maintain a balance of deliveries and

receipts, inaccurately schedules deliveries and receipts, or

exceeds its Maximum Input Quantity or its Maximum Equivalent

Quantity, then, in addition to all other charges owing,

Transporter shall impose all of the applicable imbalance,

scheduling and overrun charges set forth in this section, as

applicable.

6.2 Scheduling Penalty.

(a) Receipt Point Scheduling. If during a Critical Period, as

defined in Section 2.40, Shipper delivers a quantity of gas to

Transporter at any Receipt Point which exceeds or falls short

of the Scheduled Input Quantity for such Receipt Point by the

greater of five percent or 400 Dth, then for all quantities in

excess of or which fall short of the Scheduled Input Quantity

by more than the greater of five percent or 400 Dth of the

Scheduled Input Quantity for such Receipt Point, Shipper shall

pay Transporter a penalty equal to the maximum IT Rate Schedule

rate.