Stingray Pipeline Company

Third Revised Volume No. 1

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Effective Date: 08/01/2001, Docket: RP01-473-000, Status: Effective

Second Revised Sheet No. 137 Second Revised Sheet No. 137 : Effective

Superseding: First Revised Sheet No. 137

GENERAL TERMS AND CONDITIONS

12. UNAUTHORIZED DELIVERY OF GAS

12.1 DEFINITION

"Unauthorized Gas" shall mean any volume of gas

delivered to Stingray that Stingray cannot

identify as being delivered pursuant to a

transportation nomination on behalf of an

existing Shipper.

12.2 APPLICABILITY NOTICE AND CLAIMS

All Unauthorized Gas shall be subject to this

Section. Stingray shall give notice in writing

to the owner/Shipper of the Unauthorized Gas (if

known) and to the operator of the applicable

supply point where the Unauthorized Gas was

received, that said Unauthorized Gas is subject

to these provisions and will be posted on the

Internet Web Site. In addition, on the first

business day following the fifteenth of each

month, Stingray shall post on the Internet Web

Site the volume, date first received on

Stingray's System, and point of receipt of any

Unauthorized Gas received ("Notice"). The

initial posting will remain on the Internet Web

Site until a Valid Claim has been submitted or

until at least ninety (90) days after the

initial posting of the Notice. In order to be a

Valid Claim for purposes hereof, a claim must:

(a) be provided to Stingray in writing; (b)

identify the specific Unauthorized Gas

delivered; (c) provide independent evidence of

ownership of the Unauthorized Gas claimed; and

(d) agree to indemnify Stingray fully with

respect to any adverse claims to ownership of

the gas or to the proceeds resulting from the

sale thereof. In addition, the Unauthorized Gas

must be nominated to an effective transportation

Agreement with Stingray that contains the

Receipt Point at which Unauthorized Gas was

received ("Valid Nomination") in order to

prevent the accrual of further penalties under

Section 12.3 hereof.

12.3 TREATMENT OF UNAUTHORIZED GAS

(a) If a Valid Claim and Valid Nomination are

submitted within three (3) business days of

the posting of the Notice, no penalty shall

be assessed under this Section but the

provisions contained within Section 10 of

these General Terms and Conditions shall

apply fully to such nominations and

receipts.