Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 06/01/2002, Docket: RP00-482-003, Status: Effective

First Revised Sheet No. 424 First Revised Sheet No. 424 : Effective

Superseding: Original Sheet No. 424

GENERAL TERMS AND CONDITIONS

(continued)

A Shipper shall be subject to a penalty for failure to

comply with Standard Operational Flow Orders equal to two

hundred percent (200%) of the applicable Daily Index

Price(s) per Dth multiplied by the quantity of Gas by which

it deviated from the requirements of the Operational Flow

Order. A Shipper shall be subject to a penalty for failure

to comply with Emergency Response Operational Flow Orders

equal to three hundred percent (300%) of the applicable

Daily Index Price(s) per Dth multiplied by the quantity of

Gas by which it deviated from the requirements of the

Operational Flow Order. No penalty shall be assessed if

Shipper's noncompliance is directly caused by force majeure.

If, and to the extent that, issuance of an Operational Flow

Order without at least twenty-four (24) hours' notice prior

to it becoming effective prevented a Shipper's compliance

with the Operational Flow Order or other Tariff

requirements, such Shipper shall not be subject to the

Operational Flow Order penalty or other penalties, fees or

charges, which otherwise would have been incurred for the

Day of issuance of the Operational Flow Order. Such

penalties and charges shall not be excused beyond twenty-

four (24) hours from the time Transporter gives notice.

Failure to comply with an Operational Flow Order may also

result in an immediate interruption of Shipper's services

(receipts and/or deliveries) by Transporter. The Shipper

shall not be subject to such penalties if Shipper has

complied within a reasonable range, which range will be

specified in the Operational Flow Order.

(d) Action by Transporter. In the event that, in Transporter's

reasonable estimation, actions undertaken pursuant to (a),

(b) or (c) above are insufficient to remedy the situation or

there is insufficient time to institute such actions,

Transporter shall take such actions as are reasonably

necessary to maintain system integrity, deliverability,

services and pressurization to all or any segments of its

system. Transporter is authorized to use all of the

resources of its system to such ends, through the integrated

operation of storage, line pack and all supply received into

Transporter's system.