Norteño Pipeline Company

First Revised Volume No. 1

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Effective Date: 04/01/1996, Docket: CP96- 81-007, Status: Effective

Original Sheet No. 260 Original Sheet No. 260 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(ii) purchase the Positive Imbalance from

Shipper, free and clear of any adverse

claims by any party, at a rate equal to

75% of the sport market commodity charge

hereinabove referenced, as required to

bring the cumulative imbalance to within

the 10 percent limit.

Imbalances for any month that become apparent

after the time for notice has expired shall

be considered as an imbalance for the month

following the month in which the imbalance

became apparent.

(d) Unauthorized Receipts Charge - Unauthorized

receipts are takes of transportation gas by

Shipper at the Delivery Point(s) prior to

execution of a Service Agreement or

submission and scheduling of a Nomination as

provided in Sections 17, 19.1 and 19.2 above.

For any unauthorized receipts, Norte¤o shall

assess a charge equal to two times the

maximum interruptible transportation

commodity charge that would have been

applicable to Shipper's service were it a

firm sales customer under Norte¤o's Sales

Rate Schedules. Further, such unauthorized

receipts shall be considered a Negative

Imbalance pursuant to this Section 19.

(e) Balancing at Contract Termination - Following

the termination of the Transportation Service

Agreement, Shipper shall be required to

correct any remaining excess or deficiency in

receipts and deliveries at the affected

Receipt Point(s) and Delivery Point(s) within

forty-five days after the determination by

Norte¤o that an excess or deficiency exists,

or within such longer period of time mutually

agreed upon by Shipper and Norte¤o. If after

the forty-five day period, Norte¤o determines

that Shipper received transportation

quantities in excess of the quantities

delivered to Norte¤o at the Receipt Point(s),

Norte¤o shall charge Shipper an amount

calculated in the same manner as applicable