Florida Gas Transmission Company

Third Revised Volume No. 1

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Effective Date: 04/01/1997, Docket: RP96-366-002, Status: Effective

Substitute First Revised Sheet No. 163E Substitute First Revised Sheet No. 163E : Superseded

Superseding: Original Sheet No. 163E

GENERAL TERMS AND CONDITIONS

(continued)

(2) A transportation charge calculated by multiplying the quantity

determined in (1) above by the weighted average 100% load factor

rate of firm services scheduled to the delivery points covered

by the Operating Account Agreement.

(b) If Transporter specifies a limitation on underburns, an underage

credit calculated by multiplying the quantity by which actual

deliveries are less than Scheduled Deliveries times 50% of the spot

price of gas delivered to Transporter at Tivoli, as reported in

Natural Gas Week, for the week in which the underage occurred.

Transporter shall post on its electronic bulletin board the party,

quantity, price, receipt and/or delivery points and the effective time

period of all Deferred Exchanges within two (2) working days after the

commencement of such transaction.

All costs and revenues pursuant to this Paragraph 6 will be accounted for

pursuant to Section 19.1.

7. Pack and Draft Notices

(a) General

Transporter will utilize Pack and Draft Notices to address adverse

line pack conditions systemwide or in an Affected Area. Pack Notices

will be posted to address low line pack conditions, while Draft

Notices will be used to address high line pack conditions. A Pack

Notice shall mean a notice to correct an imbalance due Transporter.

A Draft Notice shall mean a notice to correct an imbalance due

Delivery Point Operator.

Transporter shall post Pack or Draft Noticeswhen in Transporter's

sole discretion, reasonably exercised, the use of Pack or Draft

Notices would tend to improve line pack conditions. Transporter will

indicate if the Pack or Draft conditions exist systemwide or in an

Affected Area.A Delivery Point Operator must respond to a Pack/Draft

Notice if the Delivery Point Operator's combined month-to-date

balance in the Operating Account and No-Notice Account exceeds the

greater of the NNQ aggregated to the Delivery Point Operator Account

(DPOA) or one thousand (1000) MMBtuin the specified direction of the

problem (either Imbalance due Transporter or Imbalance due Delivery

Point Operator; provided, however, that if the pack or draft quantity

calculated by multiplying the percentage specified in the Pack or

Draft Notice times the balance subject to the Notice is less than 200

MMBTU, no response is required.