Empire Pipeline, Inc.

Original Volume No. 1

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

Original Sheet No. 157 Original Sheet No. 157

GENERAL TERMS AND CONDITIONS

10. UNAUTHORIZED TENDERS AND RECEIPTS (Cont'd.)

(d) Charges for unauthorized tenders and receipts shall not be

assessed if Shipper adjusts its tenders or receipts within

the time period applicable to Transporter notice; or if the

unauthorized tenders or receipts occurred at an

interconnection identified on Transporter's Web Site as a

point where Transporter has complete and unrestricted

control of gas deliveries.

(e) Subsequent to each Annual Billing Period, Transporter shall

compare the Creditable Penalties, as defined below,

attributable to such period, with the Incremental Costs, as

defined below, attributable to such period. If such

Creditable Penalties exceed such Incremental Costs,

Transporter shall credit the difference (hereinafter "Net

Creditable Penalties") to its FT shippers in accordance

with the following methodology. First, the Net Creditable

Penalties will be allocated to each month during the Annual

Billing Period in proportion to the Creditable Penalties

received by Transporter during such month. Second, for

each month during the Annual Billing Period, Net Creditable

Penalties allocated to each month shall be credited to FT

shippers on a pro rata basis in accordance with the

transportation quantities Transporter has delivered to or

for the account of each such Shipper during the month,

provided, however, in such allocation deliveries to or for

the account of any shipper that incurred an Imbalance

Penalty under Section 4.7 of these General Terms and

Conditions or a Charge for Unauthorized Tenders or Receipts

under Section 10.3 hereof within such month shall be deemed

to be zero (0) Dth. Transporter shall make credit payments

or shall otherwise provide the credit hereunder within 60

days of the end of the Annual Billing Period. Such credit

may be accomplished by a credit against any amounts owed by

Shipper to Transporter. If Incremental Costs exceed

Creditable Penalties with respect to any Annual Billing

Period, Transporter shall carry forward the net

underrecoveries to the subsequent Annual Billing Period and

may offset such net underrecoveries against any future Net

Creditable Penalties that may occur in a subsequent Annual

Billing Period. For purposes of this section, the term