{\rtf1\ansi\ansicpg1252\deff0\deflang1033{\fonttbl{\f0\fnil\fcharset0 Microsoft Sans Serif;}{\f1\froman\fprq2\fcharset0 Georgia;}{\f2\froman\fprq2\fcharset0 Times New Roman;}} {\colortbl ;\red0\green0\blue0;} \viewkind4\uc1\pard\f0\fs17\par \par Washington Gas Light Company as of 3/2/2017\par NGPA Gas\par Firm Interstate Transportation Service Operating Statement\par Effective Date:\tab\tab 07/01/2016\tab\tab\tab\tab Status:\tab\tab\tab Effective\par FERC Docket:\tab\tab PR15-00005-002\tab 227\par FERC Order:\tab\tab 156 FERC \'b6 61,190\tab\tab\tab\tab Order Date:\tab\tab 09/22/2016\par Operating Statement, Firm Interstate Transportation Service Operating Statement, 2.0.0\tab A\par \par \pard\qc\b\f1\fs24\par \par \par WASHINGTON GAS LIGHT COMPANY\par \par \par \par \par \pard\b0\par \pard\qc\b\par \par \par \par \par \par \par \par FIRM INTERSTATE TRANSPORTATION SERVICE \par OPERATING STATEMENT\par \par \pard\qr\par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \par \pard\qc WASHINGTON GAS LIGHT COMPANY\par \par FIRM INTERSTATE TRANSPORTATION SERVICE \par OPERATING STATEMENT\par \b0\par \pard\b I. \ul DEFINITIONS\ulnone\par \b0\par \pard\fi-360\li720 A.\tab\ul British Thermal Unit\ulnone shall mean the amount of heat required to raise the temperature of one avoirdupois pound of water one degree Fahrenheit at 60 degrees Fahrenheit.\par \pard\par \pard\fi-360\li720 B.\tab\ul Columbia Gas\ulnone shall mean Columbia Gas Transmission, LLC, or its successor in interest. \par \pard\li720\par \pard\fi-360\li720 C.\tab\ul Daily Transportation Quantity\ulnone shall mean the quantity of Gas Transporter receives at the Receipt Point for redelivery to the Delivery Point on a particular Day.\par \pard\par \pard\fi-360\li720 D.\tab\ul Day\ulnone shall mean the 24-hour period commencing at ten o'clock (10:00) a.m. Eastern Clock Time or as it may in the future be defined in the FERC Gas Tariff of Columbia Gas.\par \pard\par \pard\fi-360\li720 E.\tab\ul Dekatherm or DTH\ulnone shall mean a quantity of heat equal to ten therms or one million British thermal units (one MMBtu).\par \pard\par \pard\fi-360\li720 F.\tab\ul Delivery Point\ulnone shall mean the point or points of interconnection between the facilities of Shipper and the facilities of Transporter specified in the firm transportation service agreement or agreements between Shipper and Transporter.\par \pard\par \pard\fi-360\li720 G.\tab\ul FERC\ulnone shall mean the Federal Energy Regulatory Commission or its successor.\par \pard\li720\par \pard\fi-360\li720 H.\tab FITSA shall mean the Firm Interstate Transportation Agreement.\par \pard\li720\ul\par \pard\fi-360\li720\ulnone I.\tab\ul FITSOS\ulnone shall mean this Firm Interstate Transportation Service Operating Statement.\par \pard\par \pard\fi-360\li720 J.\tab\ul Gas\ulnone shall mean natural gas, re-vaporized liquefied natural gas (LNG) or any commonly accepted suitable equivalent.\par \pard\li720\par \pard\fi-360\li720 K.\tab\ul Heating Value\ulnone shall mean the number of BTUs produced by the combustion, at constant pressure, of one cubic foot of gas, saturated with water vapor, at 14.73 psia and 60 degrees Fahrenheit, with air of the same pressure and temperature as the gas, when the products of combustion are cooled to the initial temperature of gas and air, and when the water formed by combustion is condensed to a liquid state and then adjusted to a dry basis.\par \pard\li720\par \pard\fi-360\li720 L.\tab\ul Maximum Daily Quantity\ulnone shall mean the maximum quantity of gas which Transporter shall be obligated to transport and deliver on behalf of Shipper, on a firm basis, from the Receipt Point to the Delivery Point.\par \pard\li720\par \pard\fi-360\li720 M.\tab\ul MLI\ulnone shall mean the Master List of Interconnections posted on Columbia Gas\rquote s Electronic Bulletin Board.\par \pard\li720\par \pard\fi-360\li720 N.\tab\ul MMBtu\ulnone shall mean one million (1,000,000) Btus.\par \pard\li720\par \pard\fi-360\li720 O.\tab\ul Psia\ulnone shall mean pounds per square inch absolute.\par \pard\par \pard\fi-360\li720 P.\tab\ul Receipt Point\ulnone shall mean the point of interconnection between the facilities of Transporter and the facilities of Columbia Gas at Nineveh, Virginia or other point of interconnection specified as a Receipt Point in the firm transportation service agreement(s) between Transporter and Shipper. \par \pard\li720\par \pard\fi-360\li720 Q.\tab\ul Retainage Allowance\ulnone shall be the percentage set out in the Statement of Interstate Service Rates that is designed to compensate Transporter for Gas used and lost and unaccounted-for quantities ("LAUF").\ul\par \pard\ulnone\par \pard\fi-360\li720 R.\tab\ul Shipper\ulnone shall mean any entity entering into a FITSA with Transporter to receive service hereunder. \par \pard\par \pard\fi-360\li720 S.\tab\ul Therm\ulnone shall mean a quantity of heat equal to one hundred thousand British thermal units (100,000 Btus).\par \pard\par \pard\fi-360\li720 T.\tab\ul Transporter\ulnone shall mean Washington Gas Light Company, or any successor or assign.\par \pard\par \b II. \ul APPLICABILITY\ulnone\par \b0\par A. Transporter shall provide a firm interstate transportation service by receiving Daily Transportation Quantities delivered to or for Shipper at the Receipt Point and redelivering such quantities, as described below, to the Delivery Point. \par \par B. The Term of service\b \b0 under this FITSOS shall be set forth in the FITSA (s). \par \par \b III. \ul RATES\ulnone\par \b0\par A. For services provided, Shipper shall pay Transporter the rates set forth on the Statement of Interstate Service Rates attached to this FITSOS. \par \par B. Shipper shall compensate Transporter for the Retainage Allowance as described in the Statement of Interstate Service Rates. \par \page\par \par \b IV\b0 . \ul\b QUANTITY\ulnone\b0 \par \par A. \tab The Maximum Daily Quantity ("MDQ") of Gas which Transporter shall be obligated to transport and deliver on behalf of Shipper, on a firm basis, from the Receipt Point to the Delivery Point shall be as set forth in the applicable FITSA and shall be measured at Clearbrook.. \b\par \b0\par B. \tab\ul Authorized Overrun Service\ulnone . Shipper may request on any Day overrun service in excess of Shipper's MDQ. Transporter may authorize the requested overrun service when, in Transporter's reasonable judgment, the capacity and operating capability of its system will permit such service without impairing Transporter's ability to meet its other obligations. The rate for Authorized Overrun Service shall be as agreed to by the Parties but may not exceed, as applicable, (1) the 100 percent load factor equivalent of the Demand Charge (that is, the applicable Demand Charge divided by 30.4 (the average number of days per month)) and the Volumetric Charge. \par \par C.\tab\ul Unauthorized Overruns\ulnone . If Shipper's takes on any day exceed, without authorization, its MDQ or the MDQ plus the total service authorized under Authorized Overrun Service, as described above, Shipper shall be assessed and pay the following charges. For overrun quantities up to and including 105 percent of its MDQ or the total service authorized pursuant to Authorized Overrun Service, described above, Shipper shall pay the Authorized Overrun Rate. For all unauthorized quantities in excess of 105 percent of its MDQ or in excess of the total service authorized under the Authorized Overrun Service section of this FITSOS Shipper shall pay either: \par \par \pard\fi-360\li1224 (1)\tab The Authorized Overrun Rate if the overrun was inadvertent and did not threaten system operations or integrity; or \par \pard\li1224\par \pard\fi-360\li1224 (2)\tab Subject to the provisions of Section IX.C. below, a penalty equal to the penalty levels approved by FERC for Columbia Gas for violations of Operational Flow Orders, currently set forth in the \ldblquote Penalties\rdblquote Section, \ldblquote Failure to Comply with Operational Flow Orders\rdblquote subsection of the General Terms and Conditions of Columbia Gas\rquote s FERC Gas Tariff if such overrun threatened Transporter\rquote s system operations or integrity.\par \pard\fi-720\li1584\par \pard\b V. \tab\ul OPERATIONAL MATTERS\ulnone\par \b0\par \cf1 A. \tab\ul Balancing\ulnone . Balancing of receipts and deliveries of Shipper's gas hereunder shall be arranged between Shipper and Shipper's Transporter. Transporter does not provide a balancing service. \par \cf0\par B.\tab\ul Upstream Pipeline Transportation\ulnone . Transporter shall not be responsible for the imbalance charges, penalties and other applicable charges incurred by, or applicable to or on behalf of, Shipper or Shipper\rquote s customers. To the extent within their control, Shipper and Transporter will maintain the separate accounting receipt points associated with the physical Nineveh Receipt Point currently designated for Shipper as MLI 28-30 and for Transporter as MLI 78-30. Shipper and others having gas delivered to or for Shipper\rquote s account shall nominate gas to Scheduling Point MLI 28-30.\par \pard\qc\par \pard\cf1 C.\tab\ul Cooperation\ulnone . Recognizing that Shipper and Transporter both have no-notice transportation service and firm storage service with Columbia Gas for Gas delivered to the Receipt Point, Shipper and Transporter shall cooperate in scheduling and delivering Gas to the Receipt Point to ensure that Transporter\rquote s system remains in balance at all times. Any difference between quantities received by Transporter on behalf of Shipper at the Receipt Point and quantities delivered at the Delivery Point shall cause an imbalance on the Columbia Gas system and not on Transporter\rquote s system.\par \cf0\par \b VI. \tab\ul BILLING \ulnone\par \par \b0 A.\tab Billing. By the fifteenth (15th) day of each month, Transporter shall render a bill to Shipper that shall include a statement showing the amount due applicable to the preceding month, along with a computation of the amount due and payable by Shipper.\par \par B.\tab Payment. Shipper shall remit to Transporter all amounts due pursuant to this Agreement on or before the twenty-fifth (25th) day of each month for service for the preceding month. If bills are not so paid, a late payment charge may be added equal to one percent of the unpaid bill. At the end of each nominal thirty (30) day billing interval thereafter, Transporter may add an additional late payment charge equal to one and one-half percent of any unpaid amount. Should a dispute arise regarding the amount payable in any invoice rendered hereunder, the owing Party shall pay the undisputed amount and notify the other Party of any disputed amount in a timely manner. Interest (determined by the prime commercial rate charged by Citibank, N. A., New York, New York) shall accrue from the original due date on any disputed amount determined to be a valid amount due.\par \par \b VII. \tab\ul METERING\ulnone\b0\par \par A.\tab Measurements. \par (1) The volume and Heating Value of Gas delivered to the Receipt Point on behalf of Shipper shall be as determined by Columbia Gas in accordance with its approved FERC Gas Tariff. \par \par (2) The parties agree to use their best efforts and their rights under their transportation agreements with Columbia Gas to obtain necessary measurement data and records to verify the accurate measurement and allocation of Gas at the Receipt Point, including the taking of appropriate steps to correct any inaccurate readings as soon as possible. The parties agree to be bound by the proper implementation of Columbia Gas\rquote s FERC approved Tariff regarding the measurement and allocation of Gas at the Receipt Point. \par \par B.\tab Meter Point; Heating Value. The volume of Gas redelivered to the Delivery Point shall be determined by Transporter\rquote s meter at or near Clearbrook, Virginia (\ldblquote Clearbrook\rdblquote ). The Heating Value of Gas measured at the Delivery Point or other mutually agreeable point shall be deemed to be the same each Day as the Heating Value applicable to receipts at the Receipt Point. \par \par C.\tab Inspection of Records. Each party shall have the right at reasonable hours to examine the books, records, and charges of the other to the extent necessary to verify the accuracy of any statement, charge, or computation made under this Agreement. In the event an error is discovered in the amount billed in any statement rendered by Transporter, such error shall be adjusted within thirty (30) days of the determination thereof, provided that claim therefor shall have been made within sixty (60) days from the date of discovery of such error. No error will be adjusted after twenty-four (24) months from the date of such statement.\par \par D.\tab Information. Transporter and Shipper shall each have access to data from Clearbrook. Transporter shall provide Shipper and Columbia Gas with a reading in electronic format by 2:oo p.m. each Day of the quantity and volume of Gas recorded by the meter during the previous Day. Upon request, Transporter will provide Shipper with a live electronic feed to the Clearbrook meter at Shipper\rquote s cost. \par \par E.\tab Check Measurement. Shipper shall maintain an AGA-compliant check meter at or near the custody transfer point to be used as the measurement meter if Transporter\rquote s Clearbrook meter is not functioning properly. Upon request, Shipper will provide Transporter with a live electronic feed to the check meter at Transporter\rquote s cost.\par \par F.\tab Calibration and Testing of Meters. The accuracy of Transporter\rquote s measuring equipment shall be verified by its operator at reasonable intervals and, if requested, in the presence of representatives of the other party, but neither Transporter nor Shipper shall be required to verify the accuracy of such equipment more frequently than once in any 30-day period. If either party at any time desires a special test of such measuring equipment, or if either party at any time observes an error in any such measuring equipment, it will promptly notify the other party, and the parties shall then cooperate to secure a prompt verification of the accuracy of such equipment. The expense of any such special test shall be borne by the requesting party if the measurement equipment so tested is found not to be in error such that previous recordings from the equipment must be corrected under the provisions of Section VIII.H. herein. \par \par G.\tab Correction of Metering Errors. If, upon any test, Transporter\rquote s measuring equipment is found to be in error, such that the resultant aggregate error in the computed volumes of Gas and quantities of energy received or delivered does not exceed two percent (2%), such errors may be taken into account in a practical manner in computing the volumes of Gas and quantities of energy received or delivered. The measurement equipment shall, in any case, be adjusted at the time of test to record correctly. If, however, the resultant aggregate error in the computed volumes of Gas and quantities of energy received or delivered exceeds two percent (2%), previous recordings of such equipment, and the corresponding volumes of Gas and quantities of energy received or delivered, shall be corrected to zero error for any period which is known definitely or agreed upon, but in case the period is not known definitely or agreed upon, such correction shall be for a period extending over one half of the time elapsed since the date of the last test showing the meter to be operating within the specified tolerance levels. \par \par H. \tab Failure or Absence of Measuring Equipment.\par \par \tab (a) Failure of Measuring Equipment. In the event Transporter\rquote s measuring equipment is out of service, or is found registering inaccurately and the error is not determinable by test or previous recordings from such equipment, the volumes of Gas or quantities of energy received or delivered through such equipment shall be estimated: (i) by using the registration of any check meter or meters if installed and accurately registering; (ii) in the absence of check meters, by correcting the error if the percentage of error is ascertainable by calibration, special test or mathematical calculation; (iii) in the absence of check meters or the possibility of calibrations, by using recordings or quantities received or delivered through such equipment during periods under similar conditions when the equipment was registering accurately; or (iv) as otherwise agreed by Transporter and Shipper.\par \par \tab (b) The recordings from such equipment, or the volumes of Gas and quantities of energy received or delivered through such equipment, so estimated shall be used in determining the volumes of Gas and quantities of energy received or delivered for any known or agreed upon applicable period. In case the period is not known or agreed upon, such estimated receipts or deliveries shall be used in determining the quantity of Gas received or delivered hereunder during the latter half of the period beginning on the date of the immediately preceding test showing the meter to be operating within the tolerance levels specified in Section 2 and ending on the date the measuring equipment has been adjusted to record accurately. The recordings of the measuring equipment during the first half of said period shall be considered accurate in computing receipts or deliveries.\par \par \b VIII.\tab\ul FORCE MAJEURE\ulnone\par \b0\par The Force Majeure provisions related to interstate transportation services shall be set forth in the \f2 FITSA\f1 . \par \par \b IX.\tab\ul OPERATIONAL FLOW ORDERS \ulnone\par \par \b0 A.\tab\ul Right to Issue. \ulnone Transporter, in its reasonable discretion, shall have the right to issue Operational Flow Orders (\ldblquote OFOs\rdblquote ) upon determination by Transporter in its reasonable discretion that action is required, by reason of force majeure or otherwise, (i) in order to alleviate conditions that threaten the integrity of Transporter's system, (ii) to maintain pipeline operations at the pressures required to provide reliable firm services, (iii) because a metering or regulating station used in serving Shipper has failed or will imminently fail in whole or part, (iv) because the pipeline or appurtenant facilities used in serving Shipper have failed or will imminently fail, in whole or in part, (v) because any of the facilities used in serving Shipper require immediate emergency maintenance, or (vi) any like circumstance or occurrence. Transporter, in issuing an OFO, shall not unduly discriminate in favor of its other customers or markets. \par \par B.\tab\ul Notice\ulnone . Transporter shall provide as much advance warning as possible of the conditions that may create an OFO and of the anticipated duration of such an OFO. Except for force majeure events or sudden, unexpected and catastrophic events, Transporter shall provide at least twenty-four (24) hours advance notice of an OFO. When issuing an OFO, Transporter shall (1) give Shipper a full explanation of the reasons for the action, (2) state the anticipated duration of the OFO, and (3) specify reasonable actions within Shipper\rquote s physical and contractual control that must be taken by Shipper to comply. Transporter shall terminate an OFO as soon as practicable and immediately notify Shipper.\par \par \cf1 C.\tab\ul Penalties\ulnone . \par \par \pard\fi720 (1) If Shipper fails to comply with an OFO issued by Transporter, Transporter may assess a penalty on Shipper for all quantities taken or delivered in violation of that OFO equal to the penalty levels approved by FERC for Columbia Gas for violations of Operational Flow Orders, currently set forth in the \ldblquote Penalties\rdblquote Section, \ldblquote Failure to Comply with Operational Flow Orders\rdblquote subsection of the General Terms and Conditions of Columbia Gas\rquote s FERC Gas Tariff.\par \par (2) Penalties may only be assessed when there is a critical day when the integrity of Transporter\rquote s system is threatened. Transporter has the right to waive penalties on a non-discriminatory basis.\par \pard\par D.\tab Transporter shall not issue an OFO for the sole purpose of enforcing an OFO issued by Columbia Gas. In the event Columbia Gas issues an OFO, each Party shall use its best efforts to comply with the OFO. As between the parties, Transporter shall be responsible for any penalties incurred on Columbia Gas as a result of its non-compliance on that pipeline. As between the parties, Shipper shall be responsible for any penalties incurred on Columbia Gas as a result of its or its customers\rquote non-compliance on that pipeline.\par \par \cf0\b X.\tab\ul INTERRUPTION AND CURTAILMENT\par \ulnone\b0\par To the extent that (a) Columbia Gas issues an operational flow order or (b) Transporter\rquote s facilities are unable on any Day, by reason of Force Majeure or otherwise, to provide delivery of all contract quantities of both Transporter and Shipper, Transporter and Shipper shall cooperate to address the situation. If interruptions become necessary, both Transporter and Shipper shall first interrupt their interruptible customers that are being served using the Nineveh to State Line pipeline. After all of Transporter\rquote s and Shipper's interruptible customers have been interrupted, Shipper\rquote s Daily Transportation Quantity applicable to firm customers shall be curtailed on a pro rata basis based upon Transporter\rquote s, Shipper\rquote s, Transporter\rquote s transportation customers, and Shipper\rquote s Customers\rquote firm daily entitlement to have Gas delivered from Columbia Gas at the Receipt Point (currently known as the maximum daily delivery obligation, or MDDO). In any event, nothing herein shall prohibit Transporter and Shipper from complying with curtailment priorities established in their respective state tariffs or by their respective regulatory agencies.\par \par \par \cf1\b XI.\tab\ul POSSESSION\par \cf0\ulnone\b0\par Solely with regard to interstate transportation services provided pursuant to this operating statement, (i) Shipper shall be deemed to be in control and possession of gas transported hereunder prior to delivery to Transporter at the Receipt Point and after redelivery to Shipper at the Delivery Point, and (ii) Transporter shall be deemed to be in control and possession of gas transported hereunder after delivery to Transporter at the Receipt Point and until redelivery at the Delivery Point.\par \par \pard\qc\par \pard\f0\fs17\par }