Carnegie Interstate Pipeline Company

Original Volume No. 1

Effective Date: 01/01/1995, Docket: CP93-552-003, Status: Effective

Original Sheet No. 113 Original Sheet No. 113 : Effective

Superseding: Original Sheet No. 113

GENERAL TERMS AND CONDITIONS

(Continued)

17.4 Imbalance Penalties

Daily and monthly penalties shall be levied by

CIPCO against any customer who exceeds (either above

or below) the limits specified in paragraphs (a) and

(b) below. Such penalties shall apply on an

individual contract basis and shall apply in addition

to the applicable rates charged to Customer for the

service(s) provided by CIPCO. Nothing herein shall

limit CIPCO's right to take actions of whatever

nature as may be required to correct imbalances which

threaten the integrity of CIPCO's system. Such

actions include CIPCO's right to shorten or eliminate

any applicable grace period in order to protect the

integrity of CIPCO's system.

(a) Daily Imbalance Penalties

Customer will be deemed to have a

daily imbalance if Customer, or its agent,

delivers or causes to be delivered to CIPCO a

quantity which, after reduction for Applicable

Shrinkage and excluding any scheduled make-up

quantities attributable to prior imbalances,

varies on any given day by five percent (5%) or

100 Dth (whichever results in the greater

amount) from the quantity actually taken by

Customer at the aggregate of Customer's Delivery

Point(s) on that day.

If such a daily imbalance occurs,

Customer shall have a two (2) day grace period,

or such other period of time as is mutually

agreeable to both Customer and CIPCO, after

receipt of notification from CIPCO to correct

such an imbalance. Commencing on the day after

the end of such grace period and continuing each

day thereafter, if Customer has not corrected

such an imbalance, CIPCO shall bill Customer,

and Customer shall pay, the following:

(i) If the imbalance determined

in paragraph (a) above is an underdelivery

of gas to CIPCO, then the penalty shall be

ten dollars ($10.00) multiplied by such

daily imbalance quantities; or