TF03     89B0000005P128Original Sheet No. 89B
TF04               
TF05Edward C. McMurtrie, Vice President/General Manager
TF06013003122302RP00-402-001        120102

                         GENERAL TERMS AND CONDITIONS
                                  (Continued)


5.  OVERRUN AND UNDERRUN, BALANCING AND PENALTY PAYMENTS (Continued)

   
     5.4  Overrun and Underrun, Scheduling and Balancing Penalties, General
          Provisions: (Continued)

               under Rate Schedules FT-1 and IT-1 during the calendar year,
               excluding revenues from ACA surcharges, compared to the 
               total revenues received from all Shippers under Rate Sched-
               ules FT-1 and IT-1 during the calendar year, excluding
               revenues from ACA surcharges. Penalty revenue credits will
               be allocated only to those Shippers that were not assessed
               penalties on the day(s) for which such penalty revenues are
               to be credited. Penalty revenue credits will be reflected 
               as a credit billing adjustment to each March billing for
               credits accrued during the prior calendar year.

     5.5  Penalty Payment for Unauthorized Overrun and Underrun and Failure
          to Balance:

          This Section 5 providing for a penalty payment for unauthorized
          overrun or underrun and failure to balance shall under no cir-
          cumstances be considered as giving Shipper any right to overrun
          or underrun or to maintain imbalances of receipts and deliveries,
          nor shall such provision or payment be considered as a substitute