NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 02/01/1995, Docket: RP94-343-000, Status: Effective

Original Sheet No. 210 Original Sheet No. 210 : Superseded

GENERAL TERMS AND CONDITIONS

(continued)

(v) Deliveries of Overrun Gas under Service

Agreements pursuant to Rate Schedule IT;

(vi) Deliveries during the Service Month under

Service Agreements to eliminate Imbalances

resulting from compliance with Section 20

incurred within such Service Month; and

(vii) Deliveries during the Service Month under

Service Agreements to eliminate any other

Imbalances incurred within such Service

Month.

If Transporter makes prior period adjustments or

reallocations of quantities previously

allocated, Transporter shall not assess

penalties on Shipper as a result thereof,

provided such adjustments were not the result of

actions of such Shipper or its designee.

(b) If more than one Shipper designates and

nominates Gas at one Delivery Point, Transporter

shall allocate quantities delivered at such

point in accordance with the scheduled delivery

nominations. Unless Transporter otherwise

agrees, any quantities taken at the Delivery

Point in excess of those scheduled for delivery,

shall be allocated (i) pro rata among the

Shippers based on nominated quantities, (ii) if

no quantities were nominated, to the Service

Agreement(s) designated by the entity which

controls the facilities immediately downstream

of the Delivery Point, or (iii) if no Service

Agreement(s) exist, to such controlling entity

which shall be charged, and pay to Transporter,

the value of such excess quantities based on the

Index Price and highest premium factor for

Undersupplies as provided in Section 5.7(c)(ii)

below.

5.7 Balancing. All transportation services (except under

Rate Schedule NNTS) provided pursuant to this Tariff

shall be subject to the provisions of this section.