Trunkline Gas Company

First Revised Volume No. 1

Effective Date: 11/02/1998, Docket: RP99- 20-002, Status: Effective

Sub Second Revised Sheet No. 177 Sub Second Revised Sheet No. 177 : Effective

Superseding: Sub First Revised Sheet No. 177

GENERAL TERMS AND CONDITIONS

(Continued)

5. TRANSPORTATION BALANCING

5.1 Daily Scheduling

(A) Each Transportation Service Agreement, TABS-1 Service

Agreement and Operational Balancing Agreement (OBA) with a

daily scheduling variance exceeding the Tolerance Level as

stated in the applicable Rate Schedule or OBA shall be

subject to a daily scheduling penalty in accordance with this

Section 5.1; provided, however, that no individual Service

Agreement receiving or delivering Gas at a Point of Receipt

or Point of Delivery shall be assessed a daily scheduling

charge if: (1) the aggregate receipts or deliveries for all

Service Agreements at such Point, as applicable, do not

exceed aggregate nominations to such point by 10% or more or

(2) an interruptible Shipper's scheduled Quantity for a Gas

Day has been reduced as a result of a nomination by a firm

Shipper during the Evening Nomination Cycle or the Intra-day

1 Nomination Cycle in Section 3.1(C) herein.

(1) Except as set forth below, daily scheduling variance

shall be the absolute value of the percentage of: (a)

the difference between the scheduled Quantities at each

Point of Receipt and each Point of Delivery each Gas Day

and the Quantity of Gas allocated to such point divided

by (b) Quantities scheduled for receipt or delivery, as

applicable.

(2) When Shipper is utilizing a Point of Receipt or Point of

Delivery with service provided by a TABS-1 Party or an

OBA Party, as applicable, Shipper's confirmed nomination

Quantity at such point will be the actual Quantity for

purposes of calculating the daily scheduling variance.

(3) The daily scheduling variance for a TABS-1 Party or an

OBA Party will be the difference between the total