Tuscarora Gas Transmission Company

Original Volume No. 1

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Effective Date: 01/20/2004, Docket: RP00-487-002, Status: Effective

Sixth Revised Sheet No. 48 Sixth Revised Sheet No. 48 : Effective

Superseding: Fifth Revised Sheet No. 48

GENERAL TERMS AND CONDITIONS

6.4 Unauthorized Contract Overrun Penalty. If during a Critical

Period, as defined in Section 2.40, Shipper takes delivery of a

quantity of gas from Transporter at any Delivery Point which

exceeds Shipper's Maximum Equivalent Quantity at such Delivery

Point by two percent, then Shipper shall pay to Transporter

$2.50 for each Dth up to 50 Dth in excess of the applicable

Maximum Equivalent Quantity, and $25.00 per Dth for any

additional quantity of Unauthorized Daily Overrun taken by

Shipper at such Delivery Point.

6.5 Operational Balancing Agreement.

(a) An OBA is a contract between two parties which specifies the

procedures to manage operating variances at an interconnect.

(b) There is no need to submit predetermined allocations if a

transportation service provider has an OBA in effect for a

point.

(c) There is no need to submit predetermined allocations if a

transportation service provider has an OBA in effect for a

point

(d) Transporter will enter into an Operational Balancing Agreement

(OBA) with the Receiving Party. The Receiving Party is the down

stream pipeline or local distribution company (LDC) that takes

delivery of the gas at the Delivery Point for its own account

and/or the account of its transportation customers. The

Receiving Party will be responsible for any imbalances at the

Delivery Points and for any scheduling and/or balancing

penalties resulting from these imbalances.

6.6 Penalty Provisions Inapplicable.

No imbalance penalty should be imposed when a prior period

adjustment applied to the current period causes or increases a

current month penalty.