Florida Gas Transmission Company

Third Revised Volume No. 1

Effective Date: 12/15/1999, Docket: RP00- 28-001, Status: Effective

Second Revised Sheet No. 163H Second Revised Sheet No. 163H : Superseded

Superseding: Substitute First Revised Sheet No. 163H

GENERAL TERMS AND CONDITIONS

(continued)

The Delivery Point Operator’s ability to accomplish the Draft Notice response by

(2) and/or (3) above is subject to the scheduling priority provisions of Section

10C(1); provided further, that if a nominated delivery point is unavailable, the

Delivery Point Operator is not relieved of the obligation to schedule deliveries

which exceed scheduled receipts for the upcoming or otherwise specified gas day or

days, but may utilize the within gas day provisions of Section 10.A.2. to

accomplish an acceptable Draft Order response. The Delivery Point Operator must

specify the contracts on which the Draft quantities have been nominated, and to the

extent the response involves scheduling alternate deliveries, the Delivery Point

Operator must submit a written statement from the other Delivery Point Operator

indicating such party's willingness to be bound by the Draft Order for purposes of

the Performance Test as defined in (d) below.

(d) Compliance

Compliance with a Pack or Draft Notice shall mean:

(1) An Acceptable Pack or Draft Notice Response submitted by the nomination

deadline , except as otherwise provided in Section 5 of the NNTS Rate

Schedule, and

(2) Satisfaction of the Performance Test for the gas day in which the Pack or

Draft Order is in effect.

For Pack Notices, the Performance Test shall mean that actual deliveries do not

exceed Scheduled Deliveries by more than 5% or 100 MMBtu, whichever is greater.

For Draft Notices, the Performance Test shall mean that actual deliveries are not

less than Scheduled Deliveries by more than 5% or 100 MMBtu, whichever is greater.

Failure to comply with a Pack or Draft Notice will result in a separate balancing

of the quantities by which the Delivery Point Operator fails to comply with the

Pack or Draft Notice, and the noncompliance quantities shall not be recorded in

the Operating Account or No-Notice Account, nor subject to monthly balancing under

Section 14. In the event of noncompliance with a Pack Notice, the Delivery Point

Operator is deemed to have purchased the gas from Transporter’s system, and shall

be assessed a charge equal to 200% times the highest Posted Price for the indices

listed in the cash-out provisions of Section 14.B, for the week in which the Pack

Notice occurred, and a transportation charge equal to the daily weighted average

100% load factor rate of firm services scheduled to the delivery points covered by

the Operating Account Agreement. In the event of noncompliance with a Draft

Notice, the Delivery Point Operator is deemed to have sold the gas to

Transporter’s system, and shall be credited an amount equal to 50% times the

lowest Posted Price for the indices listed in the cash-out provisions of Section

14.B, for the week in which the Draft Notice occurred. Noncompliance charges or

credits will be accounted for pursuant to Section 19.1.