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Original Sheet No. 261 Original Sheet No. 261 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

to a Negative Imbalance. If after the

forty-five (45) day balancing period, Norte¤o

determines that Shipper delivered to Norte¤o

quantities in excess of the quantities

received at the Delivery Point(s), Norte¤o

shall purchase the excess transportation

quantities free and clear of any adverse

claims by any party for an amount calculated

in the same manner as applicable to a

Positive Imbalance.

19.4 Balancing of Transportation Quantities - It shall

be responsibility of the Shipper to control and,

if necessary, adjust deliveries of gas to Norte¤o

for transportation and receipts of transportation

gas from Norte¤o in order to maintain a daily

balance of receipts and deliveries. Norte¤o shall

not be obligated to receive or deliver gas in

excess of the transportation quantities scheduled

by Norte¤o's dispatchers, nor shall Norte¤o be

obligated to deliver to Shipper at the Delivery

Point(s) transportation quantities in excess of

transportation quantities received for Shipper at

the Receipt Point(s) less Retention Quantities.

Norte¤o will monitor, to the best of its ability,

receipts and deliveries for each transportation

transaction and, based upon information available,

advise the Shipper of any imbalance situation

which has occurred or may occur unless corrective

action is taken. Upon notification, Shipper shall

be obligated to adjust receipts and deliveries of

transportation gas to correct or avoid any

imbalance. Any adjustment to receipts and

deliveries by Shipper, whether or not pursuant to

notification from Norte¤o, shall be coordinated

with Norte¤o's gas dispatchers and in accord with

the procedures set forth in this Sections 15, 17

and 19.