Riverside Pipeline Company, L. P.

First Revised Volume No. 1

Effective Date: 10/01/1993, Docket: RS92- 48-001, Status: Effective

Original Sheet No. 93 Original Sheet No. 93 : Effective

GENERAL TERMS AND CONDITIONS

15. CONDITIONS OF RECEIPT AND DELIVERY; BALANCING

15.1 Quantities of gas received and delivered hereunder shall be

determined in accordance with Section 13.3 hereof.

15.2 Monthly Balancing and Penalties

(a) Daily and monthly thermal balancing of receipts and

deliveries shall be maintained by Shipper to the maximum

extent practicable. Any monthly imbalances which do occur

shall be subject to the terms and conditions of this

Section 15.2. Volumes that vary by five percent (5%) or

more of the volumes delivered to Riverside for

transportation in any month shall be subject to penalty as

(b) The determination and resolution of a Shipper's imbalances

at the end of each month shall proceed as follows:

(1) First, Riverside shall determine all month-end

imbalances under each Shipper's different

transportation agreements (including all agreements in

which the Shipper is acting as a Replacement Shipper)

and net them together to obtain a total monthly

imbalance. Riverside shall invoice Shipper for the

total monthly imbalance.