Midcoast Interstate Transmission, Inc.

Second Revised Volume No. 1

Effective Date: 11/01/2000, Docket: RP01- 4-003, Status: Effective

Substitute Original Sheet No. 85B Substitute Original Sheet No. 85B : Effective

Superseding: Original Sheet No. 85B

GENERAL TERMS AND CONDITIONS (continued)

In order for imbalances to be netted or traded, the

imbalances must occur within the same production

month and same Operational Impact Area for which

the original imbalance occurred, and must not have

adverse impact upon Transporter's system. For the

purpose of Imbalance Trading and Netting Services,

Operational Impact Area shall be defined to mean

Transporter’s entire system.

(v) Shipper can withdraw its imbalance

trades by using the Imbalance Trading and Netting

Form No. 4, as long as this form is received by

the Transporter prior to the confirming trader’s

confirmation of the trade. Imbalance trades are

considered final when confirmed by the confirming

trader and effectuated by the Transporter.

After receipt of an Imbalance Trade Confirmation,

Transporter shall send the Imbalance Trade

Notification to the initiating trader and the

confirming trader no later than noon CCT the next

business day.

(vi) After the seventeenth (17th) business day of the

month Transporter shall adjust the preceding

month's imbalance to reflect the quantities traded

and/or netted. No additional charges to the

Shipper will be imposed for monthly imbalances

so adjusted.