Reliant Energy Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/02/1997, Docket: RP97- 57-000, Status: Effective

First Revised Sheet No. 297 First Revised Sheet No. 297 : Effective

Superseding: Original Sheet No. 297

GENERAL TERMS AND CONDITIONS

(continued)

A Shipper shall be subject to a penalty for

failure to comply with Operational Flow Orders

equal to $25.00 per MMBtu multiplied by the

quantity of Gas by which it deviated from the

requirements of the Operational Flow Order;

provided, however, that such penalty shall not

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.