Quest Pipelines (Kpc)

Second Revised Volume No. 1

Effective Date: 02/01/2008, Docket: RP08-174-000, Status: Effective

Original Sheet No. 149 Original Sheet No. 149 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

daily deliveries based on the best operating information

(hereinafter called Operating Data) available to KPC and shall

make such information available to all parties to the transaction.

KPC shall make Operating Data available on the IEC System, within

one Business Day following the conclusion of the production Day

for meters equipped with EGM or the availability of chart

measurement for meters not so equipped.

12.10 Allocation of Deliveries

Quantities of Gas delivered at any Point of Delivery on any Day

shall be allocated pursuant to the allocation methodology as

described of Section 8.5(a).

12.11 Balancing Charges

It shall be the responsibility of the Shipper receiving any

transportation service(s) from KPC, or any party using such

services on behalf of the Shipper, to use all reasonable efforts

to ensure that receipts and deliveries of gas are equal to the

nominations scheduled by KPC.

If Shipper does not maintain a concurrent balance between

Quantities of Gas received, adjusted for Fuel Reimbursement, and

Quantities of Gas delivered, the following charges shall apply to

imbalances in such Quantities.

(a) Monthly Balancing

For the purposes of this Section 12.11(a), Maximum

Accumulated Imbalance Quantity (MAIQ) shall be established

as the product of 1 times the Maximum Daily Contract

Quantity (MDCQ) under a firm Transportation Agreement or

1,000 Dt., and 10% of the applicable month scheduled volumes

or 1,000 Dt, whichever is greater.

Each Month, KPC shall determine for each Shipper receiving

service under any firm or interruptible Rate Schedule the

Shipper's imbalance based on the Quantities of Gas received

and delivered in the prior Month's period. Provided that