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. 385 First Revised Sheet No. 385

Superseding: Original Sheet No. 385

GENERAL TERMS AND CONDITIONS

(continued)

5.5 Delivery Nominations and Scheduling (continued)

Shipper furnishes delivery nominations for any Day for physical

deliveries in accordance with Rate Schedules FT or IT as well as

deliveries to Storage Points of Injection for service under Rate

Schedules FSS or ISS, and Shipper or its designee fails to provide

adequate quantities of Gas to satisfy its total delivery

nominations, including Fuel Use and LUFG, for such Day,

Transporter will allocate quantities received in a manner such

that nominations for physical deliveries are fully satisfied

first, with any remaining quantities allocated to satisfy the

nominations for deliveries at Storage Points of Injection, unless

Shipper and Transporter agree to another allocation method in the

Service Agreement. Transporter will provide such notification as

may be reasonable in the circumstances when the foregoing

allocation has occurred. If the delivery nominations submitted by

Shipper under this Section 5.5 and those furnished by applicable

Pool Managers under Section 5.3 are inconsistent, such nominations

may be rejected by Transporter or, if accepted, the nomination

will be deemed to be the lowest common quantity shown on the

applicable nomination and schedule. 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 upon quantities

nominated by the affected Linked Firm Service Shippers but not

scheduled 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. Subject to the requirements of Section 10, all

delivery nominations shall be prospective only and may be used by

Transporter for all purposes in the scheduling and operation of

Transporter's system as described in this section, and Transporter

shall not be responsible or liable for taking action in reliance

on such nominations and as described herein.