Gas transported by the Company for a Customer contracting for service hereunder shall be for the sole and exclusive benefit of such Customer and shall not be available for resale except under the provisions of the Nomination Exchange Service of the Company's Gas Transportation Rate Schedules.

Service under this Rate Schedule shall be firm service for transportation volumes and firm service for balancing service up to the balancing account capacity limits and injection/withdrawal limits. The Company shall be obligated to serve requirements in excess of any firm contract amount up to the volume elected by the Customer to be transported.

Any Customer requesting service hereunder shall enter into a written contract with the Company for an initial period of one (1) year, or such other period as shall be mutually agreeable to the parties, and such contract shall continue from year to year thereafter unless canceled by either party giving to the other sixty (60) days' prior written notice of the termination of such contract at the end of the initial period or any yearly period thereafter.

All gas delivered by the Company to a Customer under this Rate Schedule shall be subject to a 0.85% line loss deduction.

A schedule of the quantities of gas to be delivered to the Company on each day of the subsequent month for the Customer's account shall be delivered to the Company at the same time that nominations are required by the delivering pipeline(s). The Company will allow a Customer to change nominations daily. Daily changes in nominations must be supplied to the Company no later than the time required for such nominations by the delivering pipeline(s).

The Company acknowledges that the volume of Customer-owned gas delivered to the Company in any day, as adjusted for line losses, may not due to operating conditions, equal the amount of gas consumed by the Customer in the same day. However, the Company requires all Customers to be administratively in balance on a daily basis utilizing services provided under this Rate Schedule and/or other applicable rates.