Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

Effective Date: 11/01/2008, Docket: RP08-436-000, Status: Effective

Fourth Revised Sheet No. 138 Fourth Revised Sheet No. 138

Superseding: Third Revised Sheet No. 138

GENERAL TERMS AND CONDITIONS

(b) If a Valid Claim and Valid Nomination are submitted

after three (3) Business Days of the posting of the

Notice but within sixty (60) Days of the posting of

the Notice, Stingray shall assess a penalty of fifty

cents ($.50) per Dth upon that Shipper transporting

the Unauthorized Gas after nomination to a

transportation Agreement with Stingray. This charge

is in lieu of the provisions contained within Section

10 of these General Terms and Conditions.

after sixty (60) Days but within one hundred twenty

(120) Days of the posting of the Notice, Stingray

shall assess a penalty of one dollar ($1.00) per Dth

upon that Shipper transporting the Unauthorized Gas

after nomination to a transportation Agreement with

Stingray. This charge is in lieu of the provisions

contained within Section 10 of these General Terms and

Conditions.

(d) If a Valid Claim and Valid Nomination are not

submitted within one hundred twenty (120) Days of the

Notice, Stingray shall retain the Gas without any

payment. Such volume of Gas retained shall be applied

toward Company Use Gas.

12.4 TREATMENT OF PENALTY COLLECTIONS

Any penalties collected in accordance with Sections 12.3(b)

and 12.3(c), net of cost, shall be credited to Non-

Offending Shippers. The credit amount shall be allocated to

Non-Offending Shippers based on their physical receipts

during a Month any penalties were assessed under Sections

12.3(b) or 12.3(c). The credit shall be reflected on

Shippers' invoices issued in the second Month following the

Month of penalty collection. A Non-Offending Shipper is any

Shipper that was charged for transportation service under

any of Stingray's applicable rate schedules but was not

assessed any penalties under Sections 12.3(b) or 12.3(c)

during the Month.