Nora Transmission Company

First Revised Volume No. 1

Effective Date: 11/01/1997, Docket: RP97-105-005, Status: Effective

Second Revised Sheet No. 171 Second Revised Sheet No. 171 : Superseded

Superseding: First Revised Sheet No. 171

GENERAL TERMS AND CONDITIONS (Continued)

quantities which exceed by more than four percent (4%) the

quantities received by Pipeline pursuant to the provisions

of Section 13 of the General Terms and Conditions of this

FERC Gas Tariff. In the event Customer fails to deliver or

cause to be delivered within 45 days of notification a

quantity of gas sufficient to balance deliveries to

Pipeline with the quantity taken from Pipeline, an

imbalance penalty shall be imposed of $10/dth multiplied by

the remaining net balance of underdeliveries

in excess of four percent which exists at the end of the 45

day period.

It is Pipeline's intention to operate without having to impose

imbalance penalties. Therefore, Pipeline will waive imbalance

penalties so long as the Customer is making reasonable effort to

balance receipts and deliveries and has attempted to work with

Pipeline to alleviate the imbalances. No imbalance penalty

will be assessed when a prior period adjustment applied to

the current period causes or increases a current month penalty.

b. Disposition of Penalties or Cash Out Amounts

Any net penalty revenue received under (a)(1) and (2) from

affiliated companies of Pipeline will be credited on a

prospective basis to firm Customers in proportion to their

contract quantity. Any net cash out revenue will be credited

to Customers in the form of a negative surcharge on firm and

interruptible service rates.

36. EXIT FEES

36.1 Upon the effective date of this Tariff, any Customer that desires

to reduce or terminate any capacity entitlement it holds on

Pipeline's system may do so upon payment of an exit fee.

Pipeline will permit the negotiation of an exit fee in the event

no other party equals or betters the current Customer's rate or

no bids are made and the current Customer wants to be released

from the capacity prior to the end of its service agreement.

However, if another party bids for the capacity at a rate equal

to or higher than the current Customer's rate, up to the maximum

rate, Pipeline will release the current Customer if it does not

wish to retain the capacity.

36.2 For any exit fee payable under this Section 36, Pipeline shall

issue an invoice for the amount of the negotiated exit fee.

The entire amount of the invoice shall be payable ten (10)

days after receipt of the invoice and interest shall accrue