Tuscarora Gas Transmission Company

First Revised Volume No. 1

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

Substitute Original Sheet No. 95 Substitute Original Sheet No. 95

Superseding: Original Sheet No. 95

GENERAL TERMS AND CONDITIONS

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

6.2 Balancing Penalties. (Continued)

A net positive 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 positive result. Commencing upon notification by Transporter

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

Transporter system is not constrained or its integrity 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 positive 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 positive

imbalances.

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

difference between the actual quantity received and the delivered

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

whichever is greater, the Shipper shall be assessed a penalty of

$2/Dth applied to the excess quantity. If the imbalance is not

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

imbalance, Transporter shall be able to retain the remaining imbalance

quantity without compensation to the Shipper and free and clear of any

adverse claim. Quantities retained by Transporter will be sold and the

proceeds from the sale of confiscated gas will be credited to all

shippers in accordance with Section 29.2 of these General Terms and

Conditions.

(d) Scheduled delivery quantity exceeds actual delivered quantity

An imbalance shall exist when the quantity scheduled (nominated and

confirmed) for delivery exceeds the actual delivered quantity.

Penalty: When the difference between the scheduled delivery quantity

and actual delivered quantity is in excess of 10% of the actual

deliveries, or 400 Dth, whichever is greater, the Shipper shall be

assessed the maximum applicable interruptible transportation rate

applied to the excess quantities.