Arkansas Western Pipeline Company

First Revised Volume No. 1

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

First Revised Sheet No. 69 First Revised Sheet No. 69 : Superseded

Superseding: Original Sheet No. 69

due to force majeure conditions, as defined in Section 8 of

this ITS 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, the Transporter shall charge

Shipper a penalty equal to $2.00/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

(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 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 ITS Service Agreement or submission of