COMMUNICATIONS PROTOCOL BETWEEN PEOPLES AND NATURAL GAS SUPPLIERS (NGS) I. General Communications A. The following operational data and information is posted and exchanged via Peoples EBB called GASTAR: * Contacts * Nominations * Local Production Detail Meter Statements * Customer Electronic Meter Reads * Daily Target Volumes * Storage Inventory Volumes * Aggregate customer usage * Pool Balance Reports The following departments and organizations are critical to this information and data exchange: Peoples: The first line of communications is through the Transportation Services Department which shall also facilitate communications between NGSs and other Peoples personnel on an as needed basis. To the extent that there are changes in personnel or responsibilities, Peoples will update through GASTAR. Natural Gas Suppliers (NGS): NGSs will notify Peoples of the identity of the person responsible for the following functions: sales, operations, billing, contract, regulatory, and/or any another contact person the NGS organization deem necessary. To the extent that there are changes in personnel or responsibilities, it is the NGSs responsibility to update Peoples. B. With respect to questions, problems, or complaints of either party, the communicating parties shall attempt resolution by telephone and/or face-to-face meetings. Should either party remain dissatisfied with the outcome of such communications, a dispute resolution procedure, mutually agreed to by both parties, may be followed by email, telephone or face-to-face meetings. C. Peoples may hold NGS meetings to share information and to elicit feedback . The date, time, and place of these meetings will be disseminated via E-mail and/or Peoples’ GASTAR system. The meetings shall address issues that impact a variety of departments within both Peoples and NGS’s organizations including but is not limited to transportation program updates, regulatory updates, and industry news. D. Peoples shall offer orientation sessions for new NGSs and training sessions for usage of its electronic bulletin board and nomination system, GASTAR. E. Operational conference calls may be established on a periodic basis to discuss capacity and gas supply issues with NGSs. II. Critical Day Planning As events occur that could develop into system emergencies or lead to a threatening of system integrity, Peoples may request and/or require NGSs or customers to take certain actions to protect, maintain, or reestablish the safe operation of the system, in accordance with paragraph 3 of the Rules & Regulations of Peoples’ Supplier Tariff. 1 COMMUNICATIONS PROTOCOL BETWEEN PEOPLES AND NATURAL GAS SUPPLIERS (NGS) A. Maintenance Alerts (MA) - a maintenance alert is an announcement of actual or pending events related to various physical connections to Peoples’ system. These communications shall occur on an as needed basis and shall be communicated via GASTAR as soon as practical. A “MA” may be communicated regarding the following physical conditions: * Compressor station outages * Pipeline Maintenance * Well shut-ins * Line pressures of major transmission systems * Receipt Point Constraints The “MA” may list the affected area, metering station number(s), line number, etc. A “MA” may require action by Peoples, NGSs, or producer. B. Operational Alert (OA) - An operational alert may be called during periods of projected increased or decreased consumer demand for natural gas. An “OA” is a request for specific action on the part of an individual NGS, or all NGSs. The NGSs are expected to respond to “OA’s” as soon as practical giving notices to Peoples of their intended action. An “OA” may preclude an Operational Flow Order (OFO). Peoples will communicate the “OA” via GASTAR and/or telephone at least 24 hours in advance. The communication may include the following information: * Date * Conditions (reason) for alert * Requested action (increase or decrease nomination) * Requested volume in dth * Projected length of alert Peoples will maintain a record of the date, time, and person contacted, the requested action, and action taken. Peoples will notify effected parties via GASTAR once the “OA” condition has ended. C. Operational Flow Order (OFO) - An OFO is defined in paragraph 4 of the Supplier Tariff. are expected to comply with an “OFO” to maintain Peoples’ operational integrity. NGSs 1. Peoples will communicate the “OFO” as soon as practical via the telephone or GASTAR. Peoples will contact the NGSs 24 hour emergency contact person to communicate the OFO. If Peoples is unable to make personal contact with the NGS, Peoples will send an email to the NGS * Date and time of OFO issued * Conditions (reason) for OFO * Required nomination (flow volume) in dth * Potential customer consumption changes * Date and time OFO must be met * Projected length of OFO 2. The NGS is required to respond to the OFO by meeting the applicable required flow volume on the expressed date (s) and time. A NGS is not responding to the OFO flow volume on the specified date (s) and time will be subject the penalties outlined in the Supplier Tariff. 3. Peoples will maintain a record of the date, time, person contacted, required action, and action taken. Peoples will notify effected parties via GASTAR once the “OFO” condition has ended. 4. OFO simulation exercises will be established from time to time in order to test NGSs contacts and responses. 2 COMMUNICATIONS PROTOCOL BETWEEN PEOPLES AND NATURAL GAS SUPPLIERS (NGS) 5. Subsequent to calling an OFO, Peoples and NGS agree to informally discuss the circumstances leading to the OFO and an evaluation of NGS responses to the OFO. D. Curtailment - In the event of an emergency curtailment of customer consumption Peoples will alert the appropriate NGS, and if appropriate, will coordinate with them responses to media and elected officials. III. Customer Communications Peoples will provide NGSs with sufficient advance notice of customer communications regarding transportation programs that list or refer to NGSs by name. IV. Regulatory/Legislative Rates, rules and delivery terms for transportation service are set forth in Peoples’ Retail tariff. Rates, rules and delivery terms for the various pooling services are set forth in Peoples’ Supplier tariff. Both tariffs can be accessed via the home page: http://www.peoples-gas.com 3