U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 10/01/2002, Docket: RP00-472-002, Status: Effective

Substitute First Revised Sheet No. 51 Substitute First Revised Sheet No. 51 : Effective

Superseding: ORIGINAL SHEET NO. 51

GENERAL TERMS AND CONDITIONS

9.8 Unauthorized Delivery Charge: Unauthorized deliveries are

deliveries of gas for transportation made to Transporter at the

Receipt Point(s) prior to either execution of a Transportation

Agreement or confirmation of customer nomination information.

For any unauthorized deliveries, Transporter shall assess (a) a

Non-Critical Period charge equal to the maximum tariff rate

applicable under Rate Schedule IT; or (b) a Critical Period

charge equal to $25/Dth. A Non-Critical Period shall be defined

as any normal operations time period. A Critical Period shall be

defined as any time period during which the operational integrity

of Transporter's pipeline system is threatened. Transporter will

notify Shippers of a Critical Period by a prompt Internet website

posting. Transporter will waive the Critical Period charge if

the unauthorized deliveries did not cause operational problems on

Transporter's pipeline system, in which case Transporter shall

assess the Non-Critical Period charge upon the Shipper's

unauthorized deliveries. Transporter shall have the right to

retain unauthorized deliveries at Receipt Point(s) that have not

been cured in accordance with the above after 30 days notice to

the responsible party.

9.9 Imbalance Charge: If Shipper's deliveries to or receipts from

Transporter differ from scheduled quantities and if satisfactory

arrangements have not been made for the Delivering Pipeline or

other capable entity to act as the balancing party, Shipper shall

pay Transporter either (a) a Non-Critical Period Imbalance Charge

equal to the maximum tariff rate applicable under Rate Schedule

IT; or (b) a Critical Period Imbalance Charge equal to $15 per

Dth in addition to any other applicable charges. A Non-Critical

Period shall be defined as any normal operations time period. A

Critical Period shall be defined as any time period during which

the operational integrity of Transporter's pipeline system is

threatened. Transporter will notify Shippers of a Critical

Period by a prompt Internet website posting. Transporter will

waive the Critical Period charge if the imbalance from scheduled

quantities did not cause operational problems on Transporter's

pipeline system, in which case Transporter shall assess the Non-

Critical Period charge upon the Shipper's imbalance from

scheduled quantities. Transporter shall have the right to retain

unauthorized deliveries at Receipt Point(s) that have not been

cured in accordance with the above after 30 days notice to the

responsible party. No Imbalance Charge will be imposed when a

prior period adjustment applied to the current period causes or

increases a current month penalty.