Florida Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 10/19/2000, Docket: RP00-552-000, Status: Effective

Fourth Revised Sheet No. 163C Fourth Revised Sheet No. 163C : Superseded

Superseding: Third Revised Sheet No. 163C

GENERAL TERMS AND CONDITIONS

(continued)

(d) MSS Revenues. Fifty percent (50%) of the revenues received by Transporter

compensation for the transportation aspect of MSS service shall be retained

by Transporter and fifty percent (50%) shall be recorded in the Balancing

Tools Account and accounted for pursuant to Section 19.1.

5. Operational Purchases or Sales

Operational Purchases or Sales may be utilized to manage line pack, with purchases made

on those days in which Transporter needs to increase line pack levels, and sales made

on those days in which Transporter needs to decrease line pack levels. Transporter will

utilize this tool to cover noncompliance with pack/draft notices, alert days or OFO’s,

to compensate for the time lag inherent in utilizing tools which require advance

notice, to restore in-kind quantities settled through the cash-out at the end of the

month or as otherwise required to maintain a reasonable system balance. Transporter

shall post a notice on its electronic bulletin board stating the desired quantity, and

the minimum quantity, if any, for which a bid will be accepted. Additionally,

Transporter may post any other criteria, including, but not limited to, geographic

location and specific response time requirements. Bids shall be accepted only from

parties having been determined to be creditworthy pursuant to Section 16 and providing

satisfactory proof of ability to perform. Transporter shall accept the bid(s) that

result in the lowest purchase cost for Operational Purchases and the highest sales

revenues for Operational Sales consistent with any other criteria specified.

Operational Purchases shall have the receipt point scheduling priority equal to

Alternate Firm of Section 10.C.2.(b). Operational Purchases or Sales in the Market Area

shall receive no special scheduling priority. In the event Transporter makes

Operational Purchases or Sales at a Market Area delivery point, the following

additional conditions will apply: 1) if the party is not the Delivery Point Operator,

the Delivery Point Operator must consent in writing; and 2) actual deliveries must be

within the greater of 2% of Shipper’s total Scheduled Deliveries or 500 MMBtu, in the

direction (overage or underage) specified by Transporter.

Failure to comply will result in the following charges:

(a) If Transporter specifies a limitation on overages, the sum of the following

charges:

(1) An overage charge calculated by multiplying the quantity by which actual

deliveries exceed Scheduled Deliveries times 200% of the highest Posted

Price for the indices listed in the cash-out provisions of Section 14.B,

for the week in which the overage occurred.