Empire Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 133 Original Sheet No. 133

GENERAL TERMS AND CONDITIONS

4. NOMINATIONS, SCHEDULING AND ALLOCATION (Cont'd.)

4.6 Limitation on Obligation. Should the quantities of Gas

received from Shipper(s) by Transporter at the Point(s) of

Receipt exceed the Confirmed Nomination, Transporter shall

notify Shipper of such fact, a reasonable time after such

becomes known, and Shipper shall seek to reduce deliveries to

Transporter forthwith to the extent necessary to avoid or

eliminate any resulting imbalance. Transporter may attempt to

transport the Gas received, as provided in the applicable

Service Classification. In the event any such excess delivery

would jeopardize the safety of Transporter's operations and/or

its ability to met its contract commitments to others, such

decisions being within the reasonable judgment and discretion of

Transporter, Transporter shall have the right to refuse to

accept, without any liability to Shipper or any other person,

all or such part of said excess delivery as Transporter deems

necessary, and shall notify Shipper accordingly as soon as

feasible.

4.7 Daily Imbalance Penalty: Daily Imbalance Penalties shall be

paid for each Dth of Gas by which the aggregate quantity of Gas

scheduled for delivery by Transporter to Shipper in a Day

exceeds by two percent (2%), or is less by two percent (2%)

than, the total of Dth's delivered to Shipper during such Day,

after eliminating any portion of such difference which is caused

by action of Transporter. Such penalty charges shall be:

variations > 2% = 4% $ 5.00 per Dth

variations > 4% = 5% $10.00 per Dth

variations > 5% $15.00 per Dth

Transporter shall not charge a Daily Imbalance Penalty if

Transporter has allowed the imbalance to occur pursuant to

Section 3.1 of these General Terms and Conditions.

Transporter will waive the Daily Imbalance Charge if in

Transporter's reasonable judgment, Shipper's actions have not

jeopardized Transporter's ability to operate its system or

impaired Transporter's ability to meet its other service

obligations. Penalties or waivers of penalties will be applied

in a not unduly discriminatory basis.