T.W. Phillips Pipeline Corp.

Original Volume No. 1

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

Original Sheet No. 54 Original Sheet No. 54

GENERAL TERMS AND CONDITIONS

(Continued)

13.5. Unauthorized Overrun Charge – If Shipper exceeds its MDQ without approval of the

Transporter, Shipper shall pay a rate equal to twice the AOS rate set forth on

the Statement of Rates and Charges for each MMBtu of Gas taken in excess of

Shipper’s MDQ.

13.6. Waiver – Transporter may waive its right to collect all or any portion of the

charges assessed Shipper under this section, provided that such waiver is granted

in a nondiscriminatory manner.

14. CREDITING AND PENALTY REVENUES

14.1. Amounts OFO and Imbalance Penalties

14.1.1. Amounts collected by Transporter as payment of OFO and Imbalance penal-

ties, pursuant to Sections 11 and 13 of the GT&C, net of any resulting

costs shall be credited to Eligible Shippers in the month such penalties

are invoiced.

14.1.2. For a given month, Eligible Shippers with regard to OFOs are defined as

Shippers who complied with Transporter’s OFO.

14.1.3. For a given month, Eligible Shippers with regard to Imbalances are Ship-

pers who did not incur an Imbalance penalty.

15. NEGOTIATED RATES

15.1. Transporter and Shipper may agree to a rate under any Rate Schedule which may

deviate in either form or level or both from the applicable maximum Recourse

Rates set forth in the Statement of Rates and Charges in this Tariff. If Trans-

porter and Shipper do not agree to a Negotiated Rate, the applicable Recourse

Rates for that service will be available.