Quest Pipelines (Kpc)

Second Revised Volume No. 1

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

Original Sheet No. 153 Original Sheet No. 153 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

Percentage Applicable Imbalance

Level Mid-Continent

in Excess of MAIQ Spot Index

0% - 5% 1.0 x Highest Weekly Price

> 5% - 10% 1.1 x Highest Weekly Price

>10% - 15% 1.2 x Highest Weekly Price

>15% - 20% 1.3 x Highest Weekly Price

>20% 1.4 x Highest Weekly Price

The percentage imbalance level shall be calculated by

dividing the imbalance in excess of MAIQ by the actual

Quantity of Gas delivered during the Month in which the

excess occurred, unless the percentage imbalance level would

be lower if calculated using operating data provided

pursuant to Section 12.9 of these General Terms and

Conditions, in which case the percentage imbalance level

shall be calculated using such operating data.

(3) During each twelve month period beginning on the effective

date of this Section 12, KPC shall refund any net revenue

(sales revenue less purchase cost) received from operation

of paragraphs (a)(1) and (2) to all shippers on a pro-rata

basis based on quantity delivered under rate schedules

applicable to this Section 12 to each shipper during such

twelve (12) month period. If KPC incurs a net cost during

such twelve month period, the amount will be deferred and

offset against revenue in the next twelve (12) month period.

Carrying costs shall be calculated on the net balance each

month (either net revenue or net cost) utilizing the rate

set forth in Section 154.501 of the Commission's

regulations.

(b) Mid-Continent Spot Price Calculation

For disposition of excess receipts and deliveries

under Sections 12.11(a)(1) and (2) herein, the weekly

Mid Continent Spot Index shall be the Kansas/Oklahoma

Field Zone Price for Gas delivered to Panhandle

Eastern Pipeline Company from the table "Spot Prices