Quest Pipelines (Kpc)

Second Revised Volume No. 1

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

Original Sheet No. 161 Original Sheet No. 161 : Effective

GENERAL TERMS AND CONDITIONS (Continued)

12.16 Unauthorized Overrun Receipts

KPC shall notify Shipper of excess receipts in order to permit

Shipper to reduce receipt quantities. If the excess receipts

continue and such receipts jeopardize The safety of the KPC system

or KPC's ability to serve other Shippers, KPC shall be entitled to

refuse to accept such excess receipts. If, despite such refusal

the excess receipts continue all further excess receipts as to

which notice has been given shall be treated as excess receipts

under Section 12.11(a) with a percentage imbalance level greater

than 20%.

12.17 Imbalance Trading and Netting Procedures

To the extent that a Shipper has not been notified by KPC that its

imbalances are creating an operational problem on its system, and

that the continuation of such imbalance is endangering service to

other Shippers, KPC shall notify and post in accordance with the

provisions set forth in this section, the total imbalance quantity

including the portion thereof that is equal to or greater than the

MAIQ for netting and/or trading. Shipper shall have until the end

of the period specified in this section to eliminate its imbalance

with no further penalty. If Shipper does not eliminate such

imbalance by the end of such period, or has been notified by

Pipeline that its imbalance is creating an operation problem, such

imbalance shall be Cashed-out pursuant to the provisions set forth

in Sections 12.11(a)(1)(i) and 12.11(a)(2)(i) hereof.

(i) On or before the ninth (9th) business day of each month, KPC

shall send Shipper a statement detailing the unresolved

imbalance volume for the previous month within each Service

Agreement. Shippers may correct monthly imbalances, until

the close of business on the seventeenth (17) business day

of each month, by trading imbalances with other Shippers, or

by netting imbalances created under its own transportation

contracts.