Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 60-000, Status: Effective

Second Revised Sheet No. 317 Second Revised Sheet No. 317 : Effective

Superseding: Substitute First Revised Sheet No. 317

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

(a) General: Shipper shall be obligated under practical

operating conditions to avoid any Imbalance, to correct any

such Imbalances as soon as possible and in accordance with

this Section 5.7, and to conform receipts to scheduled

nominations and deliveries to scheduled nominations.

Shippers with deliveries in Pooling Area(s) different than

that of receipts shall be deemed for purposes of cashout of

Monthly Imbalances to hold any Imbalance(s) in the Pooling

Area(s) of delivery; provided, however, that Pool Managers

shall be subject to the provisions of Rate Schedule PS.

(b) Limitations: Transporter shall not be obligated under any

circumstances (i) to deliver more Gas to a Shipper during

any given Day or Month than it shall have received for the

account of Shipper during said period, except to the extent

Transporter shall have previously received more Gas from

Shipper for transportation than it has delivered to Shipper,

(ii) to receive or deliver during any given Day a total

quantity of Gas in excess of the Maximum Contract Quantity

or Contract Limitations or, if service is being limited by

Transporter, the maximum quantity of available capacity

allocated to Shipper. In the event that Shipper fails to

comply with its obligations under this section, Transporter

may, in addition to charging the applicable rate for such

volumes, impose excess charges or penalties that might

otherwise be assessed and/or avail itself of any other

remedies available to Transporter in accordance with its

Tariff and under applicable law.

apply:

(i) Notification: