B-R Pipeline Company

Original Volume No. 1

Effective Date: 05/01/2004, Docket: RP04-224-000, Status: Effective

Original Sheet No. 71 Original Sheet No. 71 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

13. OPERATING CONDITIONS (Continued)

13.17 Pre-Determined Allocations ("PDAs"). In the event an OBA

is not in effect at a particular interconnecting point on

Transporter's system, the following will apply:

Transporter and Shipper shall list in Shipper's service agreement of

allocation methodology types agreed upon: Ranked, Pro Rata,

Percentage, Swing, and Operator Provided Value. (NAESB 2.3.16)

The same standard allocation methodologies

shall be available for use at all points. (NAESB 2.3.17)

The types of allocation methodologies is a list

from which two parties may agree. If the two parties cannot

agree upon an allocation methodology, pro rata based upon

confirmed nominations should be used as the default method.

The party responsible for custody transfer (the party

performing the measurement function) should provide the

allocation. (NAESB 2.3.18)

The timing for reporting daily operational

allocations after the gas has flowed is within one business day

after end of gas day. If the best available data for reporting

daily operational allocations is the scheduled quantity, that

quantity should be used for the daily operational allocation.

(NAESB 2.3.21)

The time limitation for disputes of allocations

shall be 6 months from the date of the initial month-end

allocation with a 3-month rebuttal period. This standard shall

not apply in the case of deliberate omission or

misrepresentation or mutual mistake of fact. Parties' other

statutory or contractual rights shall not otherwise be

diminished by this standard. (NAESB 2.3.26)