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Gulfstream Natural Gas System, L.L.C.
FERC Gas Tariff
Original Volume No. 1

Original Sheet No. 160


                         GENERAL TERMS AND CONDITIONS
                                  (CONTINUED)


            21.2  If Receipt or Delivery Point Operators have not executed an 
                  OBA with Transporter as described in Section 21.1, then any 
                  variance between actual quantities and scheduled quantities 
                  for any Day for that Receipt or Delivery Point shall be 
                  cumulated for the month for the Shipper(s) responsible for 
                  the imbalance, and such monthly imbalances will be subject 
                  to the cashout of monthly imbalances as set forth in 
                  Section 8 herein.

            21.3  Resolution of OBA Imbalance: Transporter and the OBA Party 
                  shall resolve any imbalances in accordance with the 
                  procedures set forth in the OBA.  Unless otherwise agreed, 
                  OBA imbalances shall be resolved on a monthly basis by 
                  cashout mechanism.

            21.4  Form of OBA Agreement.  A Form of OBA Agreement is 
                  displayed on 1LineSM for informational purposes.

      22.   NEW FACILITIES POLICY

            22.1  Unless otherwise mutually agreed to by the parties, 
                  Transporter shall not be required to own, construct and 
                  install any facilities to perform any service requested by 
                  a Shipper under this Tariff.  In the event Transporter 
                  agrees to own, construct and install facilities to perform 
                  services requested including, but not limited to, hot tap, 
                  side valve, measurement, Gas supply lateral lines, looping 
                  and/or compression facilities, Transporter shall do so on a 
                  not unduly discriminatory basis.  Shipper shall reimburse 
                  Transporter (a) for the costs of such facilities installed 
                  by Transporter to receive, measure, transport or deliver 
                  natural gas for Shipper's account and (b) for any and all 
                  filings and approval fees required in connection with such 
                  construction that Transporter is obligated to pay to the 
                  Commission or any other governmental authority having 
                  jurisdiction.  Nothing in this policy statement shall 
                  require Transporter to file an application for a 
                  certificate of public convenience and necessity under 
                  Section 7 (c) of the Natural Gas Act.  Nothing in this 
                  policy statement, further, shall prevent Transporter from 
                  contesting an application for service filed pursuant to 
                  Section 7 (a) of the Natural Gas Act.  Transporter reserves 
                  the right to seek a waiver of the policy set forth herein, 
                  for good cause shown.

Issued by: P. Martin Teague, Assistant General Counsel
Issued on: March 27, 2002                     Effective on: May 28, 2002
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