Tuscarora Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 07/01/2009, Docket: RP09-926-000, Status: Effective

First Revised Sheet No. 61 First Revised Sheet No. 61

Superseding: Original Sheet No. 61

GENERAL TERMS AND CONDITIONS

2. DEFINITION OF TERMS (continued)

2.39 Daily System Imbalance

(a) The term "Daily System Imbalance" shall mean the difference on any

given gas day, subject to adjustment for scheduled make-up

quantities, between (a) the sum of the Scheduled Input Quantities

under all of Shipper's Transportation Service Agreements at all

Receipt Points at which Transporter receives quantities of gas for

Shipper's account, exclusive of the applicable Measurement Variance

Quantities, and (b) the sum of the Equivalent Quantities taken

under all of Shipper's Transportation Service Agreements at all

Delivery Points at which Transporter delivers gas for Shipper's

account.

(b) [NAESB WGQ Standard 2.3.30] All Transportation Service Providers

should allow Service Requesters (SRs) (including agents of SRs) to net

imbalances within the same Operational Impact Area on and across

contracts with the SR and to trade imbalances within the same

Operational Impact Area.

2.40 Electronic Notice Delivery [NAESB WGQ Standard 5.2.2]

Electronic Notice Delivery is the term used to describe the

delivery of notices via Internet E-mail and/or EDI/EDM.

2.41 Title [NAESB WGQ Standard 1.2.13]. The term "Title," if not otherwise

addressed in the transporter's contract or tariff, is the term used to

identify the ownership of gas.

2.42 Operational Impact Area [NAESB WGQ Standard 2.2.2]. "Operational

Impact Area" is the term used to describe a Transportation Service

Provider's designation of the largest possible area(s) on its system in

which imbalances have a similar operational effect.

2.43 Netting [NAESB WGQ Standard 2.2.3]. "Netting" is the term used to

describe the process of resolving imbalances for a Service Requester

within an Operational Impact Area. There are two types of Netting:

- summing is the accumulation of all imbalances above any

applicable tolerances for a Service Requester or agent.

- offsetting is the combination of positive or negative

imbalances above any applicable tolerances for a Service

Requester or agent.