Oktex Pipeline Company

Original Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-560-000, Status: Effective

First Revised Sheet No. 40J First Revised Sheet No. 40J : Effective

Superseding: Substitute Original Sheet No. 40J

(b) a description of Transporter's facilities to be used by the

Third Party Provider to effectuate the imbalance services, including the

points of interconnect (delivery and/or receipt points) between Third

Party's facilities and Transporter's pipeline system by which the Third

Party Provider will effect changes on Transporter's pipeline system,

subject to the following:

(i) bi-directional flow must be available at the delivery and/or

receipt points to be utilized to provide Imbalance Management Services,

and

(ii) the Third Party Provider must have the ability to deliver

gas to and receive gas from Transporter's pipeline system in order to

provide a physical balancing service, i.e., a -papertransaction will not

qualify as a Third Party imbalance management service;

(c) the method by which the Third Party Provider will give a

timely notice of the nature and level of imbalance services to be provided by

it to Shippers on Transporter's pipeline system on any given day;

(d) a certification by the Third Party Provider that, if

applicable, its service will be provided pursuant to all applicable NAESB

standards including without limitation time lines, notices and data sets;

(e) a copy of Third Party Provider's Imbalance Services Agreement

with Transporter's Shipper;

(5) a Third Party Provider must agree to indemnify Transporter

for any costs, expenses or liabilities which might arise or accrue

against Transporter due to the imbalance management services provided by

the Third Party Provider.

(6) a Third Party Provider must agree to post a performance bond

or other evidence of its ability to perform the imbalance services.

(7) a Third Party Provider must execute with Transporter a

Transportation or Storage Service Agreement as necessary to perform the Third

Party Imbalance Management Service on Transporter's pipeline system.

(8) To the event a Third Party Provider offers an imbalance

management service which is subject to the Commission's jurisdiction the

Third Party Provider must obtain the necessary Commission approval to provide

the service (including, but not limited to, certification, tariff

approval, established rates) prior to commencing imbalance management

services for Shippers on Transporter's pipeline system.

(9) In the event a Shipper purchases third party imbalance

management services,the Third Party Provider fails in whole or in part to

provide those services, and an imbalance results, to the extent of such

failure Shipper will be deemed to have no imbalance management service

and Shipper will pay Transporter a penalty in an amount pursuant to Sections

XX, XXI, XXII, XXIII hereof, plus any additional costs incurred by

Transporter to provide the services.