Stingray Pipeline Company

Third Revised Volume No. 1

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Effective Date: 07/01/2002, Docket: RP00-620-002, Status: Effective

Third Revised Sheet No. 138 Third Revised Sheet No. 138 : Effective

Superseding: Second Revised Sheet No. 138

GENERAL TERMS AND CONDITIONS

(b) If a Valid Claim and Valid Nomination are

submitted after three (3) business days of

the posting of the Notice but within sixty

(60) calendar days of the posting of the

Notice, Stingray shall assess a penalty of

fifty cents ($.50) per Dth upon that

Shipper transporting the Unauthorized Gas

after nomination to a transportation

Agreement with Stingray. This charge is

in lieu of the provisions contained within

Section 10 of these General Terms and

Conditions.

(c) If a Valid Claim and Valid Nomination are

submitted after sixty (60) days but within

one hundred twenty (120) days of the

posting of the Notice, Stingray shall

assess a penalty of one dollar ($1.00) per

Dth upon that Shipper transporting the

Unauthorized Gas after nomination to a

transportation Agreement with Stingray.

This charge is in lieu of the provisions

contained within Section 10 of these

General Terms and Conditions.

(d) If a Valid Claim and Valid Nomination are

not submitted within one hundred twenty

(120) calendar days of the Notice,

Stingray shall retain the gas without any

payment. Such volume of gas retained shall

be applied toward Company Use Gas.

12.4 TREATMENT OF PENALTY

COLLECTIONSAny penalties collected in accordance

with Sections 12.3(b) and 12.3(c), net of cost,

shall be credited to Non-Offending Shippers. The

credit amount shall be allocated to Non-Offending

Shippers based on their physical receipts during

a month any penalties were assessed under

Sections 12.3(b) or 12.3(c). The credit shall be

reflected on Shippers' invoices issued in the

second month following the month of penalty

collection. A Non-Offending Shipper is any

Shipper that was charged for transportation

service under any of Stingray's applicable rate

schedules but was not assessed any penalties

under Sections 12.3(b) or 12.3(c) during the

month.