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. 151 Original Sheet No. 151 : Effective









(a) Any imbalance remaining will be cashed out on a

tiered basis pursuant to the following schedule:



(Horizon (Shipper

pays pays

IMBALANCE LEVEL Shipper) Horizon)

----------------------- ------------ ------------


0% to 5% 100% x AMIP 100% x AMIP


Greater than 5% to 10% 90% x AMIP 110% x AMIP


Greater than 10% to 15% 80% x AMIP 120% x AMIP


Greater than 15% to 20% 70% x AMIP 130% x AMIP


Greater than 20% 60% x AMIP 140% x AMIP


(b) Following any offsetting with other Shippers, a

Shipper's remaining imbalance will be cashed out based on the

percentage of that imbalance compared to the total receipts for

that Shipper during the month. For example, if the total receipts

were 1,000 Dth and the remaining underage imbalance after

offsetting with other Shippers was 100 Dth, the total Imbalance

Level would be 10%. The first 5% (50 Dth) would be cashed out at

100% of the AMIP and the remaining 50 Dth would be cashed out at

110% of the AMIP.


(c) The Average Monthly Index Price (AMIP) is the

arithmetic average of the Weekly Index Prices (WIPs). The WIP for

any week is the average index price reported in 'Weekly Gas Price

Index' issued by "Natural Gas Intelligence" under the caption

"Non-Utility End-User Citygate, Illinois via NGPL."