Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-424-001, Status: Effective

Substitute Original Sheet No. 45A Substitute Original Sheet No. 45A : Effective

GENERAL TERMS

AND CONDITIONS

8.0 ACCOUNTING PROCEDURES (Cont'd)

8.1 Allocation (cont'd)

At a location which is not covered by an OBA, an

Allocating Party should receive Pre-determined

Allocations and calculate the allocations for the

location and provide these allocations to the

appropriate parties for their use. A party which

is not the allocating party at the location

should receive and process the allocations from

the allocating party and employ such allocations

when providing allocation information to its

parties (as applicable and appropriate).

At a location which is not covered by an OBA, a

Confirming Party should submit a Pre-determined

Allocation (PDA) to the allocating party at a

level that is based on the allocating party's

business practice, but, in no event, will such

PDA be at a lower level (more detailed) than that

level of information exchanged between such

parties during their confirmation process. A

Pre-determined Allocation (PDA) may not be used

to allocate gas to a nominatable transaction that

was not identified in the nomination or

confirmation process, as applicable, absent prior

mutual agreement among the Confirming Parties and

the party being allocated to in such transaction.

In the event of a conflict between this standard

and Chandeleur's existing tariff or general terms

and conditions, the latter will prevail. (NAESB

Standard 2.3.61)