Centerpoint Energy Gas Transmission Company

Sixth Revised Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-206-000, Status: Effective

First Revised Sheet No. 364 First Revised Sheet No. 364

Superseding: Original Sheet No. 364

GENERAL TERMS AND CONDITIONS

(continued)

5.2 Receipt Nominations and Allocation Methodology (continued)

Pools under Rate Schedules FT or IT for transportation not related

to storage, and Shipper fails to take delivery of adequate

quantities of Gas to utilize its total receipt nominations for

such Day, Transporter will allocate quantities received in a

manner such that nominations for receipts from physical Receipt

Points and Pools are fully utilized first, with any remaining

quantities allocated to satisfy the nominations for receipts from

Storage Points of Withdrawal. If, for any Day, due to the failure

of any FT-2 Shipper to comply with its MFO(s) under Rate Schedule

FT-2, Transporter does not have sufficient capacity to schedule

nominated quantities of Linked Firm Service, up to the amount of

Linked Firm Service that would have been available had the FT-2

Shipper complied with its MFO(s), received during the Timely

Nomination Cycle from all Linked Firm Service Shippers whose

capacity is linked to that FT-2 Shipper's MFO(s), then nominated

quantities for the affected Linked Firm Service Shippers shall be

reduced on a pro rata basis based on quantities nominated by the

affected Linked Firm Service Shippers during the Timely Nomination

Cycle; provided, however, that affected Linked Firm Service

Shipper(s) that do not also hold the applicable Rate Schedule FT-2

capacity that created the Linked Firm Service capacity shall have

a higher scheduling priority than the affected Linked Firm Service

Shipper that holds the applicable Rate Schedule FT-2 capacity that

created the Linked Firm Service capacity.

(a) Receipt Nominations:

(i) Nomination Cycles: The following standard nomination

cycles (in Central Clock time) shall be available,

except that, consistent with the terms of Rate

Schedule FT-2, an FT-2 Shipper may not be permitted to

change its nomination after the Timely Nomination

Cycle:

(1) The Timely Nomination Cycle on the Day prior to

Gas flow shall be as follows:

11:30 a.m. Nomination leaves control of the

Nominating party.