Texas Gas Transmission Corporation

First Revised Volume No. 2-A

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Effective Date: 11/01/1990, Docket: RP90-192-000, Status: Effective

Original Sheet No. 94 Original Sheet No. 94 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

such actions of whatever nature as may be re-

quired to correct imbalances which threaten

the integrity of its system, including mainte-

nance of service to other customers.

The applicable penalty shall be applied daily

to the quantities which exceed the limits

specified below, on a prospective basis, com-

mencing on the third day after initial notifi-

cation by Transporter, in the following

instances:

(i) Customer delivers or causes to be deliv-

ered to Transporter a quantity which

exceeds by more than 10% or 50 MMBtu,

whichever is greater, Customer's Trans-

portation Contract Demand; or

(ii) Customer delivers or causes to be deliv-

ered to Transporter a quantity which,

after appropriate reductions, exceeds by

more than 10% or 50 MMBtu, whichever is

greater, the quantities taken from

Transporter; or

(iii) The receiving party takes quantities

from Transporter which exceeds by more

than 10% or 50 MMBtu, whichever is

greater, the quantities received by

Transporter, after appropriate reduc-

tions.

(c) As to paragraphs (b)(i) and (ii) above, the

penalty shall be the retention by Transporter

of the total quantity of gas exceeding the 10%

or 50 MMBtu limits specified therein at no

cost to Transporter and free and clear of any

adverse claims relating thereto. In the event

Customer does not balance within 45 days,