Second Revised Volume No. 1

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Effective Date: 06/13/2008, Docket: RP08-376-000, Status: Effective

Original Sheet No. 65 Original Sheet No. 65 TRANSPORTATION GENERAL TERMS AND CONDITIONS (Continued)nominations should provide allocation statements. (Standards Board Standard2.3.22). (d) MIGC may enter into Operational Balancing Agreements (OBA) atPoints of Receipt and Delivery with the Interconnecting party. Such OBA providefor the allocation of Confirmed Nominations to the Shipper's accounts with anyoperational variances allocated to the OBA. Locations covered by an effectiveOBA do not require an additional PDA. Therefore, there is no need for shipperto submit a PDA if MIGC has an OBA in effect a receipt or delivery point. Any new or proposed change to the methodology should be sent to MIGCon or before the gas day on which the methodology is to be effective. MIGCshall confirm receipt of the methodology within 15 minutes if it is sentduring business hours by fax transmission or EDI. 4. Daily Receipt Variances - If, on a daily basis, receipts at MIGCreceipt points under a Transportation Service Agreement differ from Shipper'sdaily nominations under such agreement by more than ten percent (10%) of suchdaily nomination, Shipper shall pay MIGC, in addition to charges pursuant tothe rate provisions of the applicable MIGC Rate Schedule and any otherapplicable charges under these Transportation General Terms and Conditions anamount equal to the maximum ITS-1 rate times the total volume of any suchdifference, and MIGC may suspend receipts or deliveries (as appropriate)under such agreement pursuant to Section 15.3 or Section 4.11 until such timeas Shipper is in balance. Provided, however that if a daily receipt varianceunder an ITS-1 Transportation Service Agreement arises during a non-criticalperiod as a result of "bumping" (as defined herein), any penalty which wouldbe otherwise applicable to such variance will be waived. (a) The penalty value determined in Section 4 above will be creditedto account 242, Miscellaneous Current and Accrued Liabilities, and maintainedfor each Shipper. At the close of each twelve (12) month period from theeffective date of this tariff sheet, MIGC will credit the amounts, if any,recorded in any Shipper's account, net of any costs incurred, to the othershippers not incurring a penalty described in Section 4 above during the sametwelve (12) month period. 5. Balancing - An imbalance results when a Shipper makes delivery (orcauses the delivery) to MIGC at the receipt point(s) under a TransportationService Agreement of a quantity of gas which, after appropriate reductionfor fuel and loss, is less than or greater than the quantity of gas takenfrom MIGC at the delivery point(s) under such agreement. Shipper shallmaintain thermal balancing of receipts and deliveries under each agreement ona daily basis. Except with respect to periods during which actions by MIGC orforce majeure with respect to MIGC have caused imbalances or rendered Shipperincapable of curing imbalances during applicable periods, the procedurescontained in this Section 5 hereof shall apply. However, no imbalance penaltyshall be imposed when a prior adjustment applied to the current period causesor increases a current month penalty.