U S G Pipeline Company


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Effective Date: 10/01/2002, Docket: RP00-472-002, Status: Effective

Substitute Original Sheet No. 51A Substitute Original Sheet No. 51A : Effective



9.10 Netting and Trading Imbalances. Any Shipper using multiple

Transportation Agreements between the same points may cause

Transporter to net opposite imbalances across those agreements

prior to assessing penalties, provided that the imbalances occur

during the same month. Any two Shippers may agree to trade equal

quantities of opposite imbalances that occur during the same

month, provided that such Shippers give Transporter written

notice of such trade at least seven days before payment is due

for the otherwise applicable imbalance penalties thereon and

Transporter confirms that the two Shippers, in fact, have

offsetting imbalances. An entity shall not be deemed a

"marketing affiliate" solely by reason of imbalance trading.


9.11 Penalty Crediting: In the February invoice annually, Transporter

shall credit to all Non-Offending Shippers net penalty revenues

collected during the prior twelve-month calendar year. Net

penalty revenue credits shall be allocated in proportion to each

Non-Offending Shipper's total gas quantity actually delivered

during each month during the applicable calendar year in which

the Non-Offending Shipper did not incur a penalty. A Non-

Offending Shipper is defined as any Shipper with an effective

Service Agreement under Transporter's Rate Schedule FT or IT who

did not incur a penalty during one or more months in the

applicable calendar year.




10.1 Monthly invoicing date: Transporter shall prepare invoices

(including imbalance statements) on or before the 9th business

day of each month following the month of delivery. Invoices may

be rendered by mail or facsimile.


10.2 Right of examination: If invoice is in dispute, Shipper shall pay

portion not in dispute and provide documentation identifying basis for the

dispute. Both Transporter and Shipper shall have the right to examine at any

reasonable time the applicable books and records (or portions thereof) and

charts of the other to the extent necessary to verify the accuracy of any

statement made under or pursuant to the provisions of the gas service

agreement. Upon receipt of a request, the party will either send the

information relevant to the request to the other party or will provide the

requestor the right to review such information in the requestor's offices.