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. 159 Original Sheet No. 159

GENERAL TERMS AND CONDITIONS

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

(g) The penalty applicable to a shipper for an unauthorized

tender or receipt within the scope of Subsection 10.1(j)

shall be reduced by the amount of the daily imbalance

penalty assessed to such shipper under Section 4.7 with

respect to the imbalance penalized under Subsection

10.1(j).

(h) For purposes of this Subsection 10.3, the "Cost of Gas"

shall mean the sum of (i) midpoint of gas prices at Niagara

(NFG, Tenn) as reported in Gas Daily's Daily Price Survey

for the day in question and (ii) any penalties billed to

Transporter by another pipeline in consequence of the daily

imbalance caused by Shipper; provided, however, that if

Transporter makes a purchase of gas in direct response to

one or more particular daily imbalances, the price at which

such gas is purchased, if higher than the index price set

forth in clause (i) above, shall apply in lieu of such

index price.

10.4 Indemnification and Waiver

Shipper (or Operator, as the case may be) shall indemnify

Transporter against, hold it harmless from, and undertake and

defense of Transporter with respect to any and all claims,

losses, damages, expenses and injuries arising from its

unauthorized tender or receipt. Shipper waives any and all

claims and demands against Transporter arising from an

unauthorized tender or receipt by another Shipper, other than

claims based on a Shipper's loss of gas supply due to

Transporter's negligence or willful misconduct.