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. 323 Second Revised Sheet No. 323 : Effective

Superseding: Substitute First Revised Sheet No. 323

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

Shipper shall also be allowed to offset

imbalance quantities incurred in the prior month

in different Pooling Areas against one another

if Shipper pays a netting fee or charge. For

purposes hereof, the charge shall be from zero

up to the Maximum Rate Schedule IT

transportation rate shown in Transporter's

Statement of Effective Rates and Charges for

Transportation of Gas that would be applicable

to transportation for each Dth deemed moved to

another Pooling Area. Unless Transporter agrees

otherwise, Shipper shall pay, or cause to be

paid, the maximum applicable charge for such

netting. Transporter will not retain or charge

Fuel Use and LUFG allowances or charges for such

netting. If Transporter gives a discount of the

netting fee to a Shipper that is a marketing

affiliate of Transporter, Transporter will do so

in a manner consistent with 18 C.F.R.

§161.3(h)(l),(2), as such provision may be in

effect from time to time. A Shipper may only

transfer imbalance quantities between any two

Pooling Areas to the extent of the lesser

opposite imbalance quantities. Shipper may

exercise its right to net across Pooling Areas

by notifying Transporter in writing during the

Gas Trading Period (as defined in Section

5.7(c)(ii)(4)C. below). Upon thirty (30) Days'

notice via posting on Transporter's Internet Web

Site, Transporter may require such notification

to be made electronically via the Internet.