U S G Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 10/01/2002, Docket: RP00-472-001, Status: Effective

First Revised Sheet No. 35 First Revised Sheet No. 35 : Effective

Superseding: Original Sheet No. 35

GENERAL TERMS AND CONDITIONS

8.4 Shipper Compliance: A Shipper must comply with an OFO within the

time period set forth therein unless the Shipper is able to

demonstrate that such compliance is prevented due to a force majeure

event as defined in Article 15 of Transporter's General Terms and

Conditions. Provided that the Shipper shall make a good faith effort

to comply with any such OFO, including seeking waivers of any

contractual limits with third parties or modifications of operating

conditions on third party systems. Shipper shall notify Transporter

immediately if it believes that it is excused from compliance with

the OFO for any of the above stated reasons, and shall provide

Transporter with documentation sufficient to support its basis for

non-compliance.

8.5 Penalties: If a Shipper fails to comply with an OFO, it shall be

subject to (1) a penalty of $10.00 per dth for any volume of gas by

which it deviated from the requirements of the OFO and (2) an

Unauthorized Overrun Charge of $25.00 per Dth for quantities taken

by Shipper in excess of its MDQ. A Shipper shall not incur any

charges or penalties if such charges or penalties would not have

been incurred but for Shipper's compliance with an OFO. A Shipper

shall not incur any penalties if the OFO was necessitated

exclusively by Transporter's negligence or willful misconduct.