Arkansas Western Pipeline Company

First Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-187-003, Status: Effective

First Revised Sheet No. 51 First Revised Sheet No. 51 : Superseded

Superseding: Original Sheet No. 51

Shipper shall be obligated to adjust receipts and deliveries of

gas to correct or avoid any imbalance. Any adjustments to

receipts and deliveries by Shipper, whether or not pursuant to

notification from Transporter, shall be coordinated with

Transporter's gas dispatchers.

If Shipper fails to maintain a balance of receipts and

deliveries, Transporter shall impose the imbalance charges, as

applicable. No imbalance penalty shall be assessed unless

Transporter has notified Shipper that an imbalance has occurred

or will occur without corrective action and Shipper has failed

to take action in coordination with Transporter's gas

dispatchers. However, Transporter will not assess both

scheduling penalties and monthly imbalance penalties for

imbalances occurring in any month. Further, Transporter will

not assess penalties in the event Shipper's failure to take

corrective action is due to force majeure conditions, as

defined in Section 8 of this FTS Rate Schedule, other than

temporary failure of gas supply due to factors other than

physical impairment of facilities. In calculating imbalances,

Transporter shall take into consideration (1) quantities

retained for Fuel and Applicable Shrinkage and (2) make-up

quantities used pursuant to Transporter's notification to

correct any excess or deficiency in receipt and deliveries.

a. At least seven days prior to the end of each month,

Transporter shall notify Shipper if it appears that

deliveries to Transporter at the Receipt Point(s) will

be in excess of or deficient by five percent or more of

the transportation quantities delivered to Shipper at

the Delivery Point(s). Any appropriate corrective

action shall reduce the imbalance to the tolerance level

(i.e., five percent (5%)). In the event Shipper fails

to agree upon the appropriate corrective action to be

implemented with Transporter's gas dispatchers within

two Business Days after notification, and/or fails to

implement the corrective action agreed upon, Transporter

shall, in the event of over-deliveries, not retain the

gas, but shall charge Shipper a penalty equal to $2.00

per Dth multiplied by the excess quantity. In the event

of under-deliveries, Transporter shall charge Shipper a

penalty equal to $2.00 per Dth plus the actual

replacement cost multiplied by the deficiency quantity;

provided, however, that actual replacement cost shall

not be higher than one hundred twenty-five percent