Chandeleur Pipe Line Company

Second Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-424-000, Status: Effective

Third Revised Sheet No. 44 Third Revised Sheet No. 44 : Effective

Superseding: Second Revised Sheet No. 44

GENERAL TERMS

AND CONDITIONS

8.0 ACCOUNTING PROCEDURES

8.1 Allocation

(a) There are two types of allocations: Daily and

Monthly. Chandeleur will allocate on a Monthly

basis all receipt and delivery points on

Chandeleur. Chandeleur will report the daily

operational allocation within one Business Day

after the end of the Gas day using scheduled

quantities, if better data is not available. At a

location, the total quantity measured or estimated

for the period will be used to provide allocations

to parties' scheduled transactions (or otherwise

identified transactions consistent with NAESB WGQ

Standard 2.3.61). In the allocation process,

estimated quantities will be adjusted to actuals

following the time that the actuals are known.

The time limitation for disputes of allocations

will be six (6) months from the date of the

initial month-end allocation with a three (3)

month rebuttal period. This time limitation shall

not apply in the case of deliberate omission or

misrepresentation or mutual mistake of fact. The

Parties' other statutory or contractual rights

shall not otherwise be diminished by this

standard.

(b) Chandeleur shall have the right to enter into an

Operational Balancing Agreement (OBA) at any point

on its system. At a point where Chandeleur has

entered into an OBA, to the extent actual volumes

measured at the point vary from volumes scheduled

at such point necessitating a cash settlement,

Shippers utilizing such point shall be responsible

for charges incurred by Chandeleur as a result of

the terms of the OBA. Similarly, Shippers

utilizing such point shall be entitled to any

credits received by Chandeleur under the terms of

the OBA.