Carnegie Interstate Pipeline Company

Original Volume No. 1

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

Original Sheet No. 114 Original Sheet No. 114 : Effective

Superseding: Original Sheet No. 114

GENERAL TERMS AND CONDITIONS

(Continued)

17.4 (Continued)

(ii) If the imbalance quantity

determined in paragraph (a) above is an

overdelivery of gas to CIPCO, then the

penalty shall be the retention by CIPCO of

such daily imbalance quantity at no cost

and free and clear of any adverse claims

relating thereto. CIPCO shall have the

right to sell such gas through use of

CIPCO's electronic bulletin board and to

retain all revenues received therefrom.

In addition, if as a result of a daily

imbalance as defined in paragraph (a) above,

CIPCO incurs from any upstream pipeline an

imbalance charge or penalty, or an authorized or

unauthorized overrun or underrun charge or

penalty, attributable to Customer(s)' over or

under deliveries to CIPCO, CIPCO shall bill

Customer(s), and Customer(s) shall pay, such

Customer(s)' proportionate share of such charges

or penalties.

(b) Monthly Imbalance Penalties

If, as of the last day of each month

and after adjustment for Applicable Shrinkage

and excluding any scheduled make-up quantities

attributable to imbalances occurring in prior

months, Customer's receipts of gas from CIPCO do

not equal the quantities tendered by Customer,

or Customer's agent, to CIPCO in that month,

then Customer shall be deemed to have a monthly

imbalance. The calculation of a monthly

imbalance shall include imbalances occurring

during the two (2) day, or other, grace

period(s) under the daily imbalance provisions

of paragraph (a) above and imbalances which do

not qualify as daily imbalances under the daily

imbalance provisions of paragraph (a) above.

Customer shall have forty-five (45) days, or

such other period of time as is mutually

agreeable to both Customer and CIPCO, after

receipt of notification of a monthly imbalance

from CIPCO to correct such an imbalance. The

provisions of this