Elba Express Company, L.L.C.

Original Volume No. 1

Effective Date: 03/01/2010, Docket: RP10-342-000, Status: Effective

Original Sheet No. 65 Original Sheet No. 65

17. PENALTY LIMITATIONS, WAIVERS AND CREDITING

17.1 Limitation on Collection of Multiple Penalties:

Other provisions of COMPANY'S FERC Gas Tariff to the contrary

notwithstanding, and subject to the provisions of Section 17.2

below, if in any month SHIPPER incurs penalty charges under its

Service Agreement(s) pursuant to more than one of the following

provisions: Sections 30.2 and 30.3 of the General Terms and

Conditions, COMPANY will bill, and SHIPPER shall be obligated to

pay, only the total penalty charges accruing under the one

provision from the foregoing list which yields the largest dollar

amount for the total penalty charges incurred under that provision

by SHIPPER during the entire month.

17.2 Waiver:

In recognition of the fact that each penalty provision in this

FERC Gas Tariff is intended to promote conscientious operations by

the SHIPPER such that service to other SHIPPERS is not impaired in

any way, COMPANY shall waive any penalty charges incurred by

SHIPPER if COMPANY determines, in its reasonable judgment, that

SHIPPER was conducting its operations in a responsible manner at

the time the penalty charges were incurred and that SHIPPER'S

conduct did not impair service to another SHIPPER. COMPANY shall

only levy penalties to the extent necessary to prevent the

impairment of reliable service.

The waiver of any penalty charges shall not constitute an

automatic waiver of any future penalty charges. COMPANY must

grant waivers on a not unduly discriminatory basis. COMPANY shall

maintain a record of all waivers granted under this Section 17.2

and shall post on SoNet Premier information concerning such

waivers, including the penalty date, penalty volume waived, the

basis for each waiver, and an indication of whether the waivers

was granted to a COMPANY affiliate. The record of all waivers

granted under this Section 17.2 shall be reviewed after this FERC

Gas Tariff has been in effect for one year to determine whether

this provision has operated as intended. After this review has

been completed, any party may file with the Commission a proposal

to change this Section 17.2 in such manner as appropriate to

ensure that this Section promotes prudent and safe operations by

these SHIPPERS using COMPANY's pipeline system while also

following the Commission's requirement to levy penalties only to

the extent necessary to prevent the impairment of reliable

service.