Empire Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 121 Original Sheet No. 121

GENERAL TERMS AND CONDITIONS

3. TRANSPORTATION SERVICE

3.1 Operating Tolerances. It is recognized that the parties will be

unable to control exactly the quantities of Gas delivered and

accepted hereunder on any Day, and that the actual quantities

received by Transporter may vary above or below the actual

quantities delivered on any Day. Such variations shall be

considered imbalances, shall be kept to the minimum permitted by

operating conditions and shall be balanced as soon as

practicable but, unless otherwise agreed by Shipper and

Transporter, shall not exceed a daily variation of two percent

(2%) of the actual deliveries. When necessitated by adverse

operating conditions, and to the extent necessary to alleviate

such conditions, Transporter may require Shipper to provide or

take delivery of Gas to rectify an imbalance, subject to the

provisions of Section 16 of these General Terms and Conditions.

Transporter may allow a greater variation, and/or may adjust

receipts or deliveries of gas hereunder, if it determines that

it can do so to achieve elimination of previous imbalances

without adverse effect on Transporter's operations or its

ability to meet all its other obligations, including lower

priority service: provided, however, Transporter shall have the

right to adjust flows to Shipper to keep actual flows within the

two percent (2%) tolerance if Transporter deems such action

necessary to protect the operational integrity of the system.

Transporter shall notify Shipper (orally, followed by written

confirmation to be delivered by facsimile or Internet e-mail) as

promptly as feasible if Transporter is unable to allow a

variation as described in this Section 3.1. Waiver of the two

percent (2%) imbalance tolerance by Transporter pursuant to this

paragraph shall be done on a not unduly discriminatory basis.

If a monthly allocation statement provided by Transporter to

Shipper shows an imbalance owed to or by Transporter as of the

end of the prior month ("Activity Month"), the parties shall

adjust the receipts and deliveries of Gas as soon as

practicable, (but not later than the end of the month following

the Activity Month), and without limitation to Transporter's

rights set forth above, to balance any excess or delivery in

order for Shipper to receive Equivalent Quantities.

If Shipper has caused an imbalance without the consent of

Transporter pursuant to the preceding paragraph, penalty charges

may be applicable to daily imbalances, pursuant to Section 4.7