U S G Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 09/01/2005, Docket: RP05-412-000, Status: Effective

Third Revised Sheet No. 19 Third Revised Sheet No. 19 : Effective

Superseding: Second Revised Sheet No. 19

GENERAL TERMS AND CONDITIONS

1.8 The term "day" and "Gas Day" shall mean a period of 24 consecutive

hours, beginning and ending at 9:00 A.M. Central Clock Time.

1.9 The term "dekatherm" or "dth" shall mean the quantity of heat energy

that is 1,000,000 Btu's. The standard quantity for nominations,

confirmation and scheduling is dekatherms per Gas Day in the United

States.

1.10 The term "Delivering Pipeline" shall mean East Tennessee Natural Gas

Company or any other pipeline that interconnects with and delivers

into Transporter.

1.11 The term "Elapsed Prorata Capacity" shall mean the portion of the

released capacity that would have theoretically been available for

use prior to the effective time of the intraday recall based upon a

cumulative uniform hourly use of the capacity.

1.12 The term "load factor" for any given period of time shall mean the

percentage obtained by dividing the amount of the average dth

delivery of gas during said period by the Transportation Quantity

during said period.

1.13 The term "Maximum Daily Quantity," or "MDQ" where used herein or in a

gas service agreement shall mean the maximum daily quantity of

natural gas that Transporter shall be obligated to deliver under a

firm transportation agreement at a particular delivery point each

billing day or the maximum daily quantity of gas that Transporter

shall be obligated to receive at a particular receipt point each

billing day.

1.14 The term "Maximum Interruptible Quantity" or "MIQ" shall mean the

maximum daily quantity that a shipper may nominate under its IT

Agreement.

1.15 The term "Mcf" shall mean 1,000 cubic feet of gas.

1.16 The term "month" shall mean the period beginning at 9:00 A.M. CCT on

the first day of the calendar month and ending at 9:00 A.M. CCT on

the first day of the next succeeding calendar month.

1.16a Monthly Allocation: term used to describe the process where the

allocating party performs the allocation process at the end of the

monthly flow period. NAESB Definition 2.2.4.

1.17 The term "netting" shall mean the process of resolving imbalances for

a service requester within an Operational Impact Area. There are two

types of netting: (1) summing is the accumulation of all imbalances

above any applicable tolerances for a service requester or agent;

(2) offsetting is the combination of positive or negative imbalances

above any applicable tolerances for a service requester or agent.