Maritimes & Northeast Pipeline, L.L.C.

First Revised Volume No. 1

 Contents / Previous / Next / Main Tariff Index

Effective Date: 03/28/2008, Docket: RP08-211-000, Status: Effective

Sixth Revised Sheet No. 263 Sixth Revised Sheet No. 263 : Effective

Superseding: Fifth Revised Sheet No. 263

GENERAL TERMS AND CONDITIONS

(continued)

11. BALANCING (continued)

11.5 Imbalance Netting

For purposes of determining the imbalance quantity that will be

subject to resolution pursuant to Section 11.6 below, all

imbalances within an Operational Impact Area due Cash-out Party

under all of Cash-out Party's contracts for a Month and all

imbalances in that same Operational Impact Area due Pipeline under

all of Cash-out Party's contracts for the same Month shall be

summed together to yield a single imbalance for that Operational

Impact Area for the Month, unless otherwise requested in writing by

Cash-out Party. Any imbalance not resolved after Sections 11.3 and

11.4 above have been utilized will be subject to resolution in

accordance with Section 11.6 below.

11.6 Cash-out Provision

Prior to or with the monthly transportation invoice. Pipeline will

render each Cash-out Party a statement detailing the unresolved

imbalances. In the second Month after the imbalances occurred, a

bill for the amount due Pipeline or a credit of the amount due

Cash-out Party, as determined below, will be rendered with the

monthly transportation invoice pursuant to Section 15.1 of these

General Terms and Conditions.

(a)Imbalance Due Pipeline. For contract imbalances, after

minimization in accordance with the Imbalance Netting provisions

in Section 11.5 herein, where actual deliveries exceed actual

receipts at the Point(s) of Receipt less Fuel Retainage

Quantity, Cash-out Party or OBA Party shall pay Pipeline based

on the accumulated sum of the results of the formulas listed

below:

Imbalance

Level Factor Results

0% - < 5% 1.00 (price x quantity < 5%)

> 5% - <10% 1.10 (price x quantity > 5% & <10%)

>10% - <15% 1.20 (price X quantity >10% & <15%)

>15% - <20% 1.30 (price x quantity >15% & <20%)

>20% - <25% 1.40 (price x quantity >20% & <25%)

>25% 1.50 (price x quantity >25%)

The amount due Pipeline for each imbalance level shall be

determined by multiplying the corresponding imbalance level

factor by the Index Price, as determined in Section 11.6(c)

herein, for the Month in which the contract imbalance was

incurred, times the quantity within each imbalance level. The

calculation of cash out charges relating to excess deliveries

shall also include a transportation imbalance charge, which shall

be calculated by multiplying the excess delivery quantity by the

actual weighted average Usage Charge owed on all quantities of

Gas delivered during the Month to that Cash-out Party.