Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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

Original Sheet No. 2602 Original Sheet No. 2602 : Superseded

GENERAL TERMS AND CONDITIONS

Section 19

(Continued)

19.4 Penalties under this section are not cumulative and only the

highest applicable penalty will be assessed for any time period

where multiple penalties were in effect. Gulf South may post on

its Internet web site instructions to Customers that indicate

specific actions which would benefit the system and do not require

specific approval. Otherwise, before taking any action which it

believes will assist Gulf South in resolving any operational

problem, a Customer should contact Gulf South's Customer Service

Department for approval of such action. No Customer shall be

assessed penalties under this section where such penalties were a

result of actions taken pursuant to pipeline directives issued to

assist in correcting operational problems. Any penalties, fee, or

other applicable charges incurred pursuant to this section shall

be invoiced pursuant to Section 18 hereof.

19.5 On or before the date March invoices are tendered each year

(Annual Review), Gulf South will review the total penalty revenue

collected under this section for the immediately preceding

calendar year, plus any carry forward amounts inclusive of

interest. If the total penalty revenue collected plus any carry

forward amounts does not equal or exceed $50,000, no refunds will

be paid and the penalty revenue collected and/or any carry forward

amounts will be carried forward for inclusion in the next Annual

Review. Interest will be calculated and applied to penalty

revenue collected pursuant to Section 154.501(d) of the

Commission's Regulations.

(a) If the total penalty revenue collected is $50,000 or more,

Gulf South will credit the total penalty revenue collected

during a given Annual Review in accordance with the

following distribution methodology.

(i) A Customer's eligibility to receive a refund will be

determined solely by their conduct determined on a

monthly basis during the calendar year immediately

preceding the Annual Review where penalty revenues

were collected, including any carry forward amounts

and interest, equal or exceed $50,000.