T.W. Phillips Pipeline Corp.

Original Volume No. 1

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

Original Sheet No. 61 Original Sheet No. 61

GENERAL TERMS AND CONDITIONS

(Continued)

19.7. Prior period adjustment time limits will be six (6) months from the date of the

initial transportation invoice with a three (3) month rebuttal period, excluding

government required rate changes. This standard shall not apply in the case of

a deliberate omission or misrepresentation or mutual mistake of fact. Parties’

other statutory or contractual rights shall not otherwise be diminished by this

standard.

20. NEW FACILITIES POLICY

20.1. Transporter is under no obligation to build, acquire and/or install new or ex-

panded pipelines, taps and metering facilities necessary to provide transporta-

tion service to any new or existing Shipper. Transporter may construct facilities

on a non-discriminatory basis.

20.2. Except as provided in Section 20.4, Shipper shall reimburse Transporter: (a) for

the costs of any facilities installed by Transporter with Shipper’s consent to

receive, measure, transport or deliver Gas for Shipper’s account, and (b) for any

and all filing fees required in connection with Shipper’s FT or IT Agreement that

Transporter is obligated to pay to the Commission. Any reimbursement due Trans-

porter by Shipper shall be due and payable to Transporter within ten (10) days

receipt of Transporter’s bill. Transporter may consent that such reimbursement,

plus carrying charges thereon, be amortized over a mutually agreeable period.

Carrying charges shall be computed using Commission-established interest rates.

20.3. For the purposes of this section, Transporter’s construction, acquisition, and/or

installation costs shall include, but shall not be limited to: Transporter’s

design costs, equipment costs, labor costs, material costs, supervision costs,

construction financing costs (including a return on equity), taxes (whether income

or otherwise), operating fees, filing fees, right of way costs, environmental

compliance costs and permitting costs.

20.4. Transporter may waive all or a portion of the facility cost reimbursement require-

ment if Transporter determines that the expected throughput, revenues or other

benefits make construction of the facilities economical to Transporter. Trans-

porter shall treat requests for waiver in a manner which is not unduly discrimina-

tory.