Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 142 Original Sheet No. 142 : Effective







(d) To be eligible for a Point Operator Allocation

Agreement, a prospective point operator must meet the same

creditworthiness standards as a Shipper. Further, Horizon and the

point operator must not have previously entered into such an

agreement which was terminated because of point operator's failure

to perform. Nothing herein is intended to restrict Horizon's

right to terminate in accordance with its terms any Point Operator

Allocation Agreement entered into hereunder, including without

limitation the right to terminate because of point operator's

failure to perform consistent with its obligations under the Point

Operator Allocation Agreement.


(e) Unless otherwise agreed by Horizon or otherwise

provided herein, cash-out procedures shall not apply to volumes in

a point operator's account; provided, however, that any volume

remaining in operator's account upon termination of a Point

Operator Allocation Agreement shall be cashed-out based on the

cash-out prices for the last month such agreement was in effect.

The point operator may transfer gas out of its account by

submitting nominations for transportation subject to ordinary

confirmation and scheduling procedures.


(f) Horizon may cancel any Point Operator Allocation

Agreement in the event that point operator's account exceeds a

reasonable level in relation to the MDQ at the point(s) covered,

if the point operator does not take reasonable steps to rectify

imbalances on a timely basis, or if the point operator exceeds

with unreasonable frequency the 2% monthly restriction under this



(g) Aggregators of supply at any point which do not

control physical operation of the point may request that they be

allowed to enter into allocation agreements similar to Point

Operator Allocation Agreement(s) as to specified volumes or

Agreements delivering gas at the point, but any such request must

include a consent by the physical point operator and other

entities which could receive an allocation of gas under such

agreement and is subject to review by Horizon as to its