U S G Pipeline Company

ORIGINAL VOLUME NO. 1

Effective Date: 04/01/2000, Docket: CP99-211-001, Status: Effective

Original Sheet No. 48 Original Sheet No. 48 : Effective

GENERAL TERMS AND CONDITIONS

(b) Balancing at Contract Termination: Following the termination

of the service agreement, Shipper shall be required to "cash

out" any remaining excess or deficiency in receipts and

deliveries, unless the parties mutually agree otherwise.

shall maintain balance between scheduled quantities and

quantities delivered to and received from Transporter. Shipper

may not take more gas than scheduled without prior written

consent of Transporter. At any time during a month,

Transporter may direct Shipper to cure a current or accumulated

imbalance as necessary in Transporter's reasonable judgment to

prevent financial or operational burdens from being imposed on

Transporter or other Shipper(s) or interconnected parties. If

Shipper fails to comply with Transporter's directives within

the time specified, Shipper shall pay the OFO penalty set forth

in General Terms and Conditions Section 8.5 of Transporter's

Tariff in addition to any other amounts due to Transporter.

(d) Cash-Out Provisions: It is the responsibility of Shipper to

eliminate end-of-month imbalances by cash settlement with

Transporter. Imbalance statements should be generated at the

same time or prior to the generation of the transportation

invoice. Pursuant to Section 10.1 of Transporter's Tariff,

Transporter will send Shipper a statement detailing the

unresolved imbalance quantities and payment of the amount due

Shipper or an invoice for the amount due Transporter, in

accordance with the following:

(1) Positive Imbalances

In the event of a Positive Imbalance (i.e., when actual

deliveries exceed scheduled quantities), Transporter will

invoice Shipper for such Positive Imbalance Quantity in

accordance with the following provisions: