Tuscarora Gas Transmission Company

First Revised Volume No. 1

Effective Date: 07/01/2009, Docket: RP09-8-002, Status: Effective

Substitute Original Sheet No. 94 Substitute Original Sheet No. 94

Superseding: Original Sheet No. 94

GENERAL TERMS AND CONDITIONS

6. BALANCING, ADHERENCE TO SCHEDULING, AND CONTRACT OVERRUNS (Continued)

6.2 Balancing Penalties. (Continued)

(a) Actual delivered quantity exceeds Maximum Transportation Quantity

(continued)

Penalty: For unauthorized deliveries in excess of a Shipper's

Maximum Transportation Quantity, a Shipper shall be assessed a penalty

equal to two (2) times the maximum applicable interruptible

transportation rate for the quantity that is greater than 10% of the

Maximum Transportation Quantity or 400 Dth, whichever is greater.

(b) Actual delivered quantity exceeds receipt quantity

A net negative imbalance shall exist if the difference between the

quantity received and the quantity delivered, taking into account the

reduction in quantity for the Measurement Variance Gas Quantity,

yields a negative result. Commencing upon notification by Transporter

of the existence of the negative imbalance, and to the extent that the

Transporter system is not constrained or its integrity is not

threatened, Shipper shall have three (3) days to correct the

imbalance. If Shipper submits a balancing nomination pursuant to

Section 4.1(1) within the 3-day period and Transporter is unable to

accept the balancing nomination due to capacity restrictions or if

confirmed imbalance nominations are curtailed due to capacity

restrictions, then the time allowed to correct the imbalance without

penalty shall be extended accordingly.

Remedies: Shippers may schedule with Transporter using the nomination

process to eliminate or reduce negative imbalances. In addition, in

accordance with Section 6.7 of these General Terms and Conditions,

Shippers may net or trade imbalances to eliminate or reduce negative

imbalances.

Penalty: If at the end of the aforementioned three (3)day period the

difference between the actual delivered quantity and the receipt

quantity is in excess of 10% of the delivered quantity or 400 Dth,

whichever is greater, the Shipper shall be assessed a charge of $5/Dth

applied to the excess quantities. If the imbalance is not corrected

within forty-five (45) days of Transporter's notice of an imbalance,

the Shipper shall be assessed an additional charge of $5/Dth, applied

to the net imbalance remaining at the end of the forty-five (45) day

balancing period.