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. 158 Original Sheet No. 158

GENERAL TERMS AND CONDITIONS

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

"Creditable Penalties" shall include the sum of (A)

Imbalance Penalties collected by Transporter under Section

4.7 of these General Terms and Conditions; (B) Charges for

unauthorized tenders and receipts collected by Transporter

under Section 10.3 hereof, and (C) interest on the amounts

described in (A) and (B) above accrued on a monthly basis

at the then effective prime interest rate (Citibank, N.A.,

New York, New York). For purposes of this section, the

term "Incremental Costs" shall include reasonable costs

incurred with respect to transactions with other parties to

replace gas or otherwise to respond to operational

consequences of the imbalances or events giving rise to

Creditable Penalties that are not offset against cash-out

revenues under Section 4.9(d) of these General Terms and

Conditions, together with interest thereon accrued on a

monthly basis at the then effective prime interest rate

(Citibank, N.A., New York, New York).

Types of costs that may constitute Incremental Costs

hereunder include, but are not limited to, the cost of

replacement gas and the cost of services or penalties

incurred with respect to other transporters of gas in

response to the operational consequences set forth above.

Incremental Costs shall not include any allocation of a

portion of regular, ongoing expenses of Transporter that

would have been incurred irrespective of the imbalances or

events giving rise to Creditable Penalties. For purposes

of this section, "Annual Billing Period" shall be the

period commencing November 1, 2008 and ending March 31,

2009, and thereafter the twelve month period commencing

each April 1 and ending the following March 31.

(f) The payment of a charge for unauthorized tenders or

receipts shall not under any circumstances be considered as

giving such party the right to make unauthorized tenders or

receipts; nor shall such payment foreclose Transporter or

any other party from pursuing any available remedy against

the offending party for making such unauthorized tenders or

receipts.