NorAm Gas Transmission Company

Fourth Revised Volume No. 1

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Effective Date: 05/01/1997, Docket: RP97- 61-002, Status: Effective

Second Revised Sheet No. 217 Second Revised Sheet No. 217 : Superseded

Superseding: First Revised Sheet No. 217

GENERAL TERMS AND CONDITIONS

(continued)

and within three (3) Business Days,

unless waived by Transporter, will

either provide new information to

Shipper or reconfirm its prior

information. Transporter will rely on

its information to take such actions

as are appropriate and necessary to

operate its system.

(6) To the extent that adjustments are

made to Monthly Imbalance quantities

for prior periods after Shipper has

eliminated such quantities in

accordance with the provisions of this

Section 5.7(c)(ii), unless otherwise

agreed, such adjusted Imbalance

amounts shall be eliminated at a

factor of 1.00 multiplied by the Index

Price for the Month in which such

Imbalance was incurred.

(7) Payment of any penalties or fees for

Imbalances pursuant to this Tariff

shall not be construed to in any way

entitle or authorize Shipper to incur

any Imbalance under its Service

Agreement.

(d) Required Balancing: Subject to and in

accordance with the provisions of Section 20, if

and when Transporter determines that an

Imbalance has exceeded the Operating Range,

Transporter shall have the right to interrupt or

curtail at any time, and from time to time, the

quantities of Gas it will receive or deliver to

the extent Transporter deems necessary in order

to limit or reduce the Imbalance existing at any

time. Transporter shall provide such notice as

is provided for in said section. Transporter

shall not apply this provision in an unduly

discriminatory manner, nor in a manner contrary

to the Commission's Regulations. Nothing in the

foregoing shall supersede or negate the general

obligation of Shippers to correct any Imbalance