TPS RATE SCHEDULE
THIRD PARTY STORAGE TRANSPORTATION (Cont'd)
(3) To the extent that Shipper's TPS transportation imbalance at any time exceeds the
Transportation Demand set forth in its TPS Service Agreement, Shipper's FSS inventory under Shipper's FSS
Rate Schedule shall be increased or decreased by the amount of such excess and the amount of such excess
imbalance shall be removed from Shipper's TPS Service Agreement the following Gas Day. Such increase or
decrease shall be deemed to be a storage injection or withdrawal under Shipper's FSS Service Agreement.
Such an adjustment to or from FSS inventory shall not relieve Shipper from its responsibility to pay all
applicable transportation and storage charges. The appropriate commodity Recourse Rates (and any overrun
charges) will be assessed for the transportation into or out of storage under the appropriate
transportation Service Agreements held by Shipper in the following order of priority, if Shipper holds
more than one firm transportation Service Agreement, up to the Transportation Demand under each: (i) SST
Service Agreement; (ii) NTS Service Agreement; (iii) NTS-S Service Agreement; (iv) FTS Service Agreement;
or (v) TPS Service Agreement; provided, that Shipper may notify Transporter in writing of a preferred
different order of priority for the specified Rate Schedules. Such notice must be received by
Transporter at least 30 days prior to the beginning of the Month for which it is to be initially
effective. Any such action shall not increase Transporter's firm service obligations to Shipper.
(4) If Shipper does not have any or adequate FSS storage inventory on Transporter's system
to cure an TPS transportation imbalance, and Shipper has under-tendered gas to Transporter, Shipper
shall pay Transporter for each Dth of such outstanding under-tendered imbalance, grossed up for the
Retainage percentages applicable to Columbia Gulf Transmission Company's ITS-1 Rate Schedule and
Transporter's ITS Rate Schedule. The payment shall be the sum of: (i) the Spot Market Price for the
Month during which such quantities are made up by Transporter; plus (ii) the cost of transporting such
quantities at the total effective maximum rate under Columbia Gulf Transmission Company's ITS-1 Rate
Schedule. "Spot Market Price", for purposes of this Section, shall mean, for the applicable Month, the
contract index price last published during the applicable Month for gas delivered to Columbia Gulf
Transmission Company at Rayne Station, Louisiana, as reported in Natural Gas Intelligence or successor
publication. Upon payment of such charge, the imbalance shall be removed from Shipper's account. If
Shipper does not have adequate FSS storage capacity on Transporter's system to cure a TPS transportation
imbalance, and Shipper has over-tendered gas to Transporter, any such quantities automatically shall be
forfeited by Shipper to Transporter free and clear of all liens and encumbrances. Transporter shall
post such forfeited quantities on its EBB as gas available for sale to the highest bidder within a 24
hour notice period. Such posting may provide as a condition of sale that such gas be withdrawn from
storage within a period of time to be specified in the notice. Upon receipt of payment, Transporter
shall treat the forfeited gas proceeds as Penalty Revenues as defined in Section 19.6 of the General
Terms and Conditions.'
(5) Except for force majeure events and/or events or conditions which threaten the integrity
of Transporter's system or Transporter's ability to meet its firm service obligations, Transporter will
notify Rate Schedule TPS Shippers at least 24 hours in advance on its Internet EBB of the ability to
cure a Rate Schedule TPS imbalance by means other than the utilization of Rate Schedule FSS or the
injection and/or withdrawal of natural gas at the primary interconnect with the Third Party Storage
Company.
(6) During any time period when Transporter determines in its reasonable judgment that
system operations so require, Transporter shall have the right to require that the Shipper under a TPS
Service Agreement fully remove any TPS transportation imbalance (actual receipts versus actual
deliveries) existing on its TPS Service Agreement, regardless of whether the imbalance exceeds or is less
than the Transportation Demand on its TPS Service Agreement. If Transporter determines that an imbalance
must be removed, Transporter shall notify Shipper and Shipper will have forty-eight (48) hours from the
time of notification to correct the imbalance. The imbalance can be corrected by utilizing one of the
methods set forth in Section 3(b) above. If Shipper does not correct the imbalance within forty-eight
(48) hours of notification, Transporter, by agreement or, as operator of the Third Party Storage Company,
shall have the right to correct the imbalance by injecting into or withdrawing from Shipper's Third Party
Storage Company inventory. Shipper shall be responsible for all charges applicable under Shipper's
third party storage Service Agreement, plus any applicable transportation and storage charges incurred on
Transporter's system. To the extent that Shipper's third party storage Service Agreement gas storage
inventory is inadequate to correct the imbalance, Transporter shall avail itself of the provisions of
Section 3(b)(4) above.
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