Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

Effective Date: 12/01/2003, Docket: RP00-340-005, Status: Effective

First Revised Sheet No. 2600 First Revised Sheet No. 2600 : Superseded

Superseding: Original Sheet No. 2600

GENERAL TERMS AND CONDITIONS

Section 19

19. PENALTIES

19.1 OFO Penalty - In the event Gulf South issues an Operational Flow

Order pursuant to Section 10.4 of these General Terms and

Conditions, and Customer tenders and/or takes quantities in

violation of such Operational Flow Order by more than 3%, Gulf

South shall assess against Customer, on a daily basis, a penalty,

being five (5) times the Daily Hub Price per Dekatherm which is

tendered or taken by Customer in violation of such Operational

Flow Order. The "Daily Hub Price" as used herein is the price as

published in Gas Daily, Daily Price Survey under the heading

Louisiana-Onshore South, Henry Hub Midpoint, for the day in which

the applicable penalty was in effect or the average of the price

in effect for the day immediately before and the day immediately

after any day or days where Gas Daily is not published. Should

this publication cease to exist in its current form, then Gulf

South will choose a comparable published price for use.

(a) Subject to the requirements in Section 10.4(d)(i), in the

event Gulf South issues an OFO pursuant to Section 10.4 of

these General Terms and Conditions and a Customer at a

delivery point without EFM tenders and/or takes quantities

in violation of such OFO, Gulf South shall assess against

Customer, on a daily basis, the applicable penalty as

follows:

(i) Tenders and/or takes in violation of an OFO greater

than 10% but less than 12% of either (1) scheduled

nominations for interruptible or firm service or

(2)_point and/or contract MDQ as specified in the OFO

for NNS Customers, a penalty of three (3) times the

Daily Hub Price per Dekatherm.

(ii) Tenders and/or takes in violation of an OFO greater

than 12% of either (1) scheduled nominations for

interruptible or firm service or (2) point and/or

contract MDQ as specified in the OFO for NNS

Customers, a penalty of five (5) times the Daily Hub

Price per Dekatherm.