T.W. Phillips Pipeline Corp.

Original Volume No. 1

Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 49 Original Sheet No. 49

GENERAL TERMS AND CONDITIONS

(Continued)

10. CURTAILMENT PRIORITY

10.1. Transporter shall have the right to curtail or discontinue services, in whole or

in part, on all or a portion of its System at any time for reasons of Force

Majeure or when capacity or operating conditions so require. Transporter shall

provide Shipper notice of such curtailment as is reasonable under the circum-

stances.

10.2. If for any reason Transporter is unable on any day to deliver all of the quanti-

ties of Gas scheduled, service shall be curtailed in the following order of

priority from first curtailed to last curtailed:

10.2.1. First, scheduled quantities other than those under 10.2.2 and 10.2.3.

10.2.2. Second, AOS under Rate Schedule FT and service under Rate Schedule IT

curtailed by price from lowest to highest; provided that curtailment will

be pro rata based on scheduled quantities among Shippers paying the same

rate; and provided further that for purposes, of curtailment under this

section, Negotiated Rates that exceed the maximum Recourse Rate will be

treated as though equal to the maximum Recourse Rate.

10.2.3. Third, service within Shipper’s MDQ from Primary and Secondary Receipt

Points or Primary and Secondary Delivery Points under Rate Schedules FT,

curtailed pro rata based on scheduled quantities.

11. OPERATIONAL FLOW ORDERS

11.1. Circumstances Warranting Issuance – Transporter shall have the right to issue

Operational Flow Orders (“OFO”) as specified in this section that require actions

by Shippers in order (1) to alleviate conditions that threaten or could threaten

the safe operations or integrity of Transporter’s system, (2) to maintain pipe-

line operations at the pressures required to provide efficient and reliable firm

transportation services, and (3) to maintain the system in balance for the fore-

going purposes.