Tuscarora Gas Transmission Company

First Revised Volume No. 1

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

First Revised Sheet No. 97 First Revised Sheet No. 97

Superseding: Substitute Original Sheet No. 97

GENERAL TERMS AND CONDITIONS

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

6.5 Operational Balancing Agreement.

(a)[NAESB WGQ Standard 2.2.1] An OBA is a contract between two parties

which specifies the procedures to manage operating variances at an

interconnect.

(b)[NAESB WGQ Standard 2.3.3] There is no need to submit predetermined

allocations if a transportation service provider has an OBA in effect

for a point.

(c)In accordance with NAESB WGQ Standard 2.3.29, 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.

(d)The penalties specified in Section 6.2 above shall not be applicable at

those points covered by a balancing agreement.

6.6 Penalty Provisions Inapplicable.

(a)[NAESB WGQ Standard 2.3.31] No imbalance penalty should be imposed

when a prior period adjustment applied to the current period causes or

increases a current month penalty.

(b)When more than one penalty specified in Section 6.2 applies, Shipper

pays only the least of the applicable penalties.

(c)Unauthorized overrun penalties and scheduling penalties shall only

apply to the extent that Shipper has access to timely meter information

to meet nomination deadlines.