Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

Second Revised Sheet No. 211 Second Revised Sheet No. 211 : Effective

Superseding: First Revised Sheet No. 211

GENERAL TERMS AND CONDITIONS

(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.

(c) In the event of a Monthly Imbalance, the

following shall apply:

(i) Notification: