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Original Sheet No. 70 Original Sheet No. 70 : Superseded

the Customer 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 ITS 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

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. If, after the

balancing period, Transporter determines that Shipper

received from Transporter quantities that were less

than the quantities delivered to Transporter by Shipper

at the Receipt Point(s), Transporter shall, at its

option, retain such over-deliveries at the Receipt

Point(s) free and clear of any adverse claims of any

party or shall charge Shipper a penalty equal to $2.00

per Dth multiplied by the excess quantity. Transporter

has the right to remove access gas from its system in

any manner deemed appropriate: provided however, that

Transporter will select methods to remove such excess

gas on a