Empire Pipeline, Inc.

Original Volume No. 1

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Effective Date: 12/10/2008, Docket: CP06-5-010, Status: Effective

Original Sheet No. 119 Original Sheet No. 119

GENERAL TERMS AND CONDITIONS

2. QUALIFICATION FOR SERVICE (Cont'd.)

B) for value equal to:

1) For firm service agreements, security shall be

based upon an amount equal to the revenues for

three (3) months of the full Maximum Daily

Quantity; or

2) For interruptible service contracts, security

shall be based upon the Shipper's anticipated

usage for a three (3) month period as

determined by the Shipper and Transporter's

marketing representative, which shall

determine the Shipper's credit limit for

purposes of Subsection 2.2(d);

3) Transporter has the right to seek additional

security to cover the value of any potential

imbalance owed Transporter by a non-

creditworthy Shipper. Such imbalances shall

be valued at the sum of (A) The Midpoint

Average for the Niagara price point for the

current month, as reported in Platt's Gas

Daily Price Guide and (B) the difference

obtained by subtracting (i) the NYMEX futures

closing price for the current month, from (ii)

the highest futures price reported by NYMEX

for deliveries within any of the subsequent

twelve (12) months. For a non-creditworthy

new Shipper, the security shall be based upon

an amount of two (2%) percent of the Shipper's

maximum daily quantity for a three (3) month

period. For a non-creditworthy existing

Shipper, the security shall be based upon an

amount equal to three (3) times the largest

cumulative monthly imbalance owed to

Transporter over the most recent twelve (12)

month period; or