Arkansas Western Pipeline Company

First Revised Volume No. 1

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

Original Sheet No. 68 Original Sheet No. 68 : Superseded

of the integrity of its system, to initiate corrective

action. In the event Shipper fails to initiate the

corrective action mutually agreed upon by the Shipper and

Transporter's gas dispatchers within the period provided,

Transporter shall charge Shipper a penalty that equals the

maximum interruptible transportation rate for service

provided under Rate Schedule ITS per Dth multiplied by the

excess quantity in the event of over-deliveries or

under-deliveries.

5.6 It shall be the responsibility of the Shipper to control

and, if necessary, adjust deliveries of gas to Transporter

and receipts of transportation gas from Transporter in order

to maintain a daily balance of receipts and deliveries. It

is the intention of Transporter that daily deliveries of

natural gas by Transporter to Shipper hereunder shall be

approximately equal to daily receipts of natural gas by

Transporter from Shipper hereunder, less Fuel Usage and

Applicable Shrinkage. However, due to variations in

operating conditions, daily and monthly deliveries hereunder

by Transporter may be greater or less than corresponding

receipts of natural gas hereunder by Transporter for

transportation, less Fuel Usage and Applicable Shrinkage.

Transporter will monitor, to the best of its ability,

receipts and deliveries for each transportation transaction

and, based upon information available, advise the Shipper of

any imbalance situation which has occurred or which may

occur unless corrective action is taken. Upon notification,

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. Except with respect to the

imbalance penalty provided in (b) below, however, 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

daily and monthly imbalance penalties for imbalances

occurring in any month; further, Transporter will not assess

imbalance penalties in the event Shipper's failure to take

corrective action is