Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 05/14/2010, Docket: RP10-601-000, Status: Effective

Fifth Revised Sheet No. 2700 Fifth Revised Sheet No. 2700

Superseding: Fourth Revised Sheet No. 2700

GENERAL TERMS AND CONDITIONS

Section 20

20. IMBALANCE RESOLUTION PROCEDURES

20.1 Cash-out and Trading Provisions - It is the responsibility of the

Customer to eliminate end-of-month imbalances. Any net imbalance

remaining between allocated receipt quantities and allocated

delivery quantities, or any NNS or NNS-SCO end of month imbalance

may be resolved through the cash-out or trading methods. NNS or

NNS-SCO imbalances are defined as injected volumes in excess of

the NNS Maximum Storage Quantity (MSQ) or withdrawal volumes in

excess of NNS Storage inventory. On or before the ninth business

day of each month, Gulf South will send Customer a statement

detailing the imbalance quantity by Customer during the preceding

month. For purposes of offsetting imbalances, Gulf South shall

post a list of Customers who are either long into the pipeline or

short into the pipeline and at Customer's request will also post

on the Internet Web Site that Customer's end of the month

imbalance position. Customers will have until the seventeenth

(17th) business day of the month to resolve any imbalance

positions. All trades shall be requested and confirmed via Gulf

South's Internet Web Site. In the event of a failure or technical

difficulties with Gulf South's electronic communications system,

trade requests and confirmations may be submitted via facsimile

at (713) 479-1791 using Gulf South's Imbalance Trading Form. All

failures must be communicated to Gulf South prior to submitting a

trade via facsimile by contacting technical support at (713) 479-

8215.

(A) Trading Methods to Correct Imbalances - Imbalances may be

corrected by trading under the following methods:

(1) Trading between Transportation Contracts - Gulf South

offsets imbalances created under Customer's

transportation contracts (FTS, ITS, PS, FTS-SCO, NNS

or NNS-SCO) regardless of rate type. A Customer may

offset this net imbalance created under its FTS, ITS,

PS, FTS-SCO, NNS or NNS-SCO contracts with other

Customers that have imbalances created under FTS,

ITS, PS, FTS-SCO, NNS or NNS-SCO regardless of rate

type. A Customer who is long one month and short the

next month cannot offset the two months with his own

contracts or another customer's contracts. Each

month's imbalance can only be offset with an opposite

imbalance incurred for the same month. Offsetting

transactions under this paragraph will be allowed

without an additional charge to any Customer.