MidContinent Express Pipeline LLC

Original Volume No. 1

Effective Date: 04/10/2009, Docket: RP09-136-000, Status: Effective

Original Sheet No. 169 Original Sheet No. 169

GENERAL TERMS AND CONDITIONS

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the following Balancing Service Charges shall apply, subject to the

availability of balancing service under Rate Schedule IBS consistent

with its terms, based on the degree of variance between actual

deliveries, and Shipper's rights and/or confirmed nominations (no

charge hereunder shall apply for variances at Receipt Points):

Variance Charge

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0% to 5% No additional charges

5% to 10% $0.10/Dth

10% to 20% $0.20/Dth

20% to 50% $0.30/Dth

Above 50% $0.50/Dth

(2) Tiered Balancing Service Charges under this

Section 10.8 shall be applied on a graduated basis, i.e., the specified

charge shall apply only to that portion of the variance which is within

the corresponding tier between its lower and upper percentage

boundaries (variances within a range greater than the lower boundary

and equal to or less than the upper boundary) and not to any portion of

the variance falling within other tiers.

(b) On any day when an Operational Flow Order (but not

a Critical Time) is in effect, if actual receipts or deliveries

allocated to a Shipper at any point or under any Agreement do not

conform to such Shipper's confirmed nominations applicable to such

point and/or Agreement, Balancing Service Charges will be assessed on

such variances that are detrimental to MEP's system, based on the

conditions described in or giving rise to the Operational Flow Order;

provided, however, that such charges shall not apply with respect to

Leased Capacity. Notwithstanding the foregoing, Balancing Service

Charges shall not be assessed for variance at Receipt Points unless

explicitly stated in the Operational Flow Order. The Operational

Flow Order shall also state whether the charges are to be based on

variances at individual points, by zone or by other aggregation.

Where Balancing Service Charges apply under this subsection (b), they

shall be in lieu of Balancing Service Charges under subsection (a).

Balancing Service Charges during this period will be as follows,

based on the variance between actual receipts or deliveries and the

applicable confirmed nominations.