Arkansas Western Pipeline Company

First Revised Volume No. 1

Effective Date: 12/01/1993, Docket: CP92-570-005, Status: Effective

Original Sheet No. 52 Original Sheet No. 52 : Superseded

(125%) of the most recent spot market average price for

natural gas delivered to Arkla Energy Resources'

transmission facilities, as is reported by Gas Daily,

plus all costs incurred to transport the gas to

Transporter. The appropriate corrective action, if

required of Shipper, shall include forty-five (45) days

to eliminate any imbalance. Imbalances for any month

that become apparent after the time for notice has

expired shall be considered as an imbalance for the

month following the month in which the imbalance became

apparent. Any penalty under this Section 6.7 or

Section 6.5 above shall be assessed only on those

volumes over the five percent (5%) tolerance level.

b. Unauthorized deliveries are deliveries of gas made to

Transporter at the Receipt Point(s) prior to the

execution of an FTS Service Agreement or submission of

the Nomination Form provided in Transporter's General

Terms and Conditions. Except in those circumstances in

which the integrity of the Transporter's system is

threatened, Transporter shall provide Shipper with

prompt notification (either by telephone or by

facsimile) of such unauthorized deliveries, and Shipper

shall have twenty-four (24) hours after said

notification to initiate corrective action. If Shipper

has not initiated such corrective action within such

twenty-four hour period, Transporter shall assess a

penalty equal to $5.00 per Dth multiplied by the

unauthorized deliveries. Where system integrity is

threatened, Transporter shall have the right to take

such action as is necessary to terminate such

deliveries without any liability to Transporter.

c. Following the termination of the FTS Service Agreement,

Shipper shall be required to correct any remaining

imbalances within thirty (30) days after the

determination by Transporter that an imbalance exists,

or within such longer period of time mutually agreed

upon by Shipper and Transporter. If, after the

balancing period, Transporter determines that Shipper

received from Transporter quantities in excess of the

quantities delivered to Transporter by Shipper at the

Receipt Point(s), Transporter shall charge Shipper a

penalty equal to $2.00 per Dth plus the actual

replacement cost multiplied by such deficiency quantity

at the Receipt Point(s); provided, however, that actual