Sea Robin Pipeline Company

First Revised Volume No. 1

Effective Date: 12/01/1998, Docket: RP98-365-000, Status: Effective

Third Revised Sheet No. 36 Third Revised Sheet No. 36 : Superseded

Superseding: Second Revised Sheet No. 36

GENERAL TERMS AND CONDITIONS

(Continued)

6. RESOLUTION OF IMBALANCES

6.1 All imbalances accrued by Shipper under its Agreement(s) with

Transporter shall be resolved on a monthly basis pursuant to the provisions herein.

After each month of transportation on Transporter's system, Transporter will calculate

the imbalance which exists between the quantities of gas allocated to Shipper for its

account at the Receipt Point/s during that month and the quantities of gas allocated to

Shipper for its account at the Delivery Point/s during that month. All such imbalances

(overdeliveries and underdeliveries to Transporter) accrued by Shipper under each of its

Agreement(s) with Transporter will be combined to derive a net monthly imbalance for

purpose of the following calculations. Shipper's net monthly imbalance then will be

divided by the sum of the actual Dth's of gas delivered under all such Agreement(s)

during the month to produce Shipper's actual net imbalance percentage for the month.

In the event the imbalance(s) calculated above under Shipper's Agreement(s)

vary from the estimated imbalance(s) posted by Transporter for such Agreement(s)

during the month, the Transporter shall also calculate an estimated

imbalance percentage for that month as follows for purposes of determining

the Net Imbalance Percentage at which Shipper's entire net monthly imbalance shall be

resolved as set forth below. The estimated imbalance percentage shall be equal to the

sum of the estimated imbalances (over-deliveries and underdeliveries) in effect for each

of Shipper's Agreement(s) at the end of the month, as posted on SoNet, divided by the

sum of the quantities of gas deemed to be delivered under all such Agreement(s) during

the month.

It is provided, however, that the denominator used in the calculation of Shipper's

Net Imbalance Percentage and its Estimated Monthly Imbalance Percentage shall exclude,

if applicable, (i) any volumes allocated from Shipper's Tier I Pooling Service

Agreements to the same Shipper's Tier II Pooling Service Agreements, and (ii)

any volumes allocated from Shipper's Tier I or Tier II Pooling Service Agreements,

to the same Shipper's transportation agreements.

6.2 Subject to the provisions of Section 6.5 below, if Shipper has accrued a net

monthly imbalance such that the total quantities of gas received by Transporter for

Shipper's account during the month are less than the total quantities of gas delivered by

Transporter for Shipper's account during the month, Shipper shall pay Transporter for

Shipper's net monthly imbalance (in Dth) at the following prices based on the lesser

of Shipper's actual net imbalance percentage or Shipper's estimated imbalance

percentage for the month ("Net Imbalance Percentage").