Black Marlin Pipeline Company

First Revised Volume No. 1

Effective Date: 10/01/2002, Docket: RP02-454-000, Status: Effective

Third Revised Sheet No. 132 Third Revised Sheet No. 132 : Effective

Superseding: Second Revised Sheet No. 132

RATE SCHEDULE ITS

Interruptible Transportation Service (continued)

7. DETERMINATION OF RECEIPTS, THERMAL BALANCING AND REDELIVERY QUANTITY

7.1 Determination of Receipts:

For purposes of this section "overage" shall be defined as Scheduled

Receipts in excess of actual quantities received, and "underage" shall

be defined as Scheduled Receipts below actual quantities received. In

the event actual quantities received by Transporter do not equal the

scheduled receipts for such point, any overage or underage shall be

allocated as follows:

(1) To the extent Transporter has entered into an Operational

Balancing Agreement as set forth below which covers the point

of receipt, any overages or underages at such point of receipt

shall not be allocated to Shippers, but shall be resolved in

accordance with the OBA:

(2) to the extent there is not a OBA for the subject receipt

point, Transporter and the interconnecting Party will agree as

to which party is responsible for the predetermined allocation

(PDA) and if the party has agreed to submit the PDA,

Transporter shall allocate underages or overages in accordance

with the PDA;

(3) To the extent there is no OBA or PDA, Transporter shall

allocate any overage or underage pro-rata based on scheduled

and confirmed quantities at the receipt point.

(4) The responsibility for calculation and reporting of allocated

quantities should rest with the party responsible for

accepting NAESB allocation types. The party receiving

nominations should provide allocation statements.

A. Operational Balancing Agreement (OBA)

(1) An OBA is a contract between two parties which specifies the

procedures to manage operating variances at an interconnect.

Transporter is willing to negotiate and execute Operational

Balancing Agreements (OBAs) with appropriate parties that

operate natural gas facilities which interconnect with

Transporter's system. Such OBAs will provide that any

variance between actual quantities and scheduled and confirmed

quantities for any day shall be resolved in kind promptly or

cashed-out pursuant to the terms of the OBAs.

B. Predetermined Allocation Statements (PDA)

The upstream or downstream party providing the point confirmation

should submit the pre-determined allocation to the allocating party after

or during confirmation and before the start of the gas day. As a minimum,

allocations should be provided by both contract and location.