Viking Gas Transmission Company

First Revised Volume No. 1

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Effective Date: 07/24/2005, Docket: RP05-399-000, Status: Effective

Second Revised Sheet No. 87D Second Revised Sheet No. 87D : Effective

Superseding: First Revised Sheet No. 87D

GENERAL TERMS AND CONDITIONS

29. UNAUTHORIZED OVERRUNS AND PENALTY REVENUE CREDITS

29.1 OFO Penalties

(a) On any Gas Day when a delivery point Balancing Party takes gas outside of

the daily limits established under an Operational Flow Order ("OFO")

applicable to a delivery point(s) or a receipt point Balancing Party

delivers gas outside of the daily limit established under an OFO

applicable to a receipt point(s), such Balancing Party shall be subject to

an unauthorized overrun penalty charge applicable to each Dth of excess

quantities taken or delivered beyond a two (2) percent allowable

variation. The daily limit shall be the adjusted TQ applicable to a

specified receipt or delivery point(s) pursuant to the OFOs under

Section 8 of these General Terms and Conditions of Company's Tariff, as

notified to Balancing Party. The penalty charge shall be computed based

on a price per Dth equal to three times the midpoint price for Emerson,

Viking GL published in the Daily price survey in Platts Gas Daily for the

flow day on which the OFO is issued. In the event Platts Gas Daily does

not publish a price at Emerson, Viking GL, the penalty charge shall be

computed based on a price per Dth equal to three times the sum of the

midpoint price for TCPL Alberta, AECO plus the maximum interruptible

transportation toll set forth in TransCanada Pipelines Limited Canadian

Mainline Gas Transportation Tariff under IT Toll Schedule, including all

applicable surcharges and fuel, applicable to deliveries from Empress,

Alberta, Canada to Company at Emerson, Manitoba, Canada (such sum will be

converted to U.S. dollars using the conversion factor listed in Platts Gas

Daily applicable on the OFO flow day).

(b) All penalty revenues received by Company in accordance with this

Section 29 that are in excess of Company's costs, including but not

limited to administrative costs, will be credited annually when such net

penalty revenues are in excess of $10,000 to Balancing Parties who are in

compliance with OF0s. Such net penalty revenue credits will be credited

to such Balancing Parties based on scheduled quantities not received due

to the failure of other Balancing Parties to comply with OFOs during the

OFO period of the year in which the net penalty revenues were received.

Credits shall include net penalty revenues plus interest calculated in

accordance with Section 154.501 of FERC's regulations.

(c) The payment of unauthorized overrun penalties does not create the right to

exceed the levels established by an OFO.

29.2 Monthly Imbalance Tolerance Penalties

To the extent that Balancing Parties exceed the five (5) percent monthly

imbalance tolerance set forth in Section 5 of Company's Rate Schedule LMS and

such Balancing Parties are assessed penalties in excess of 100 percent of the

average monthly index, Company shall credit such penalty revenues that are in

excess of Company's costs, including but not limited to administrative costs,

when such net penalty revenues are in excess of $10,000 on an annual basis to

Balancing Parties who comply with the balancing requirements on a pro rata

basis per scheduled quantities. Credits shall include net penalty revenues

plus interest calculated in accordance with Section 154.501 of FERC's

regulations.