Chandeleur Pipe Line Company

Second Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP03-347-000, Status: Effective

Second Revised Sheet No. 46 Second Revised Sheet No. 46 : Effective

Superseding: First Revised Sheet No. 46

GENERAL TERMS

AND CONDITIONS

8.0 ACCOUNTING PROCEDURES (Cont'd)

8.1 Allocation (cont'd)

(d) Shippers shall cause the Operators at each

point to provide Chandeleur with a PDA. In the

event any Shipper at a receipt or delivery

point fail to cause such information to be

provided by Operator to Chandeleur, then the

default allocation methodology described in

Section 8.1(e) will be applied to all Shippers

at the point. To the extent an Operator has

submitted a PDA for a point, the Shippers with

multiple scheduled nominations at that point

may submit a PDA to Chandeleur for purposes of

further allocation.

(e) Absence of a PDA Methodology

In the absence of an allocation methodology,

as referenced above, the default allocation

procedures set forth below determine how Gas

is to be allocated at each Pipeline point when

the Gas quantities scheduled and the Gas

quantities that actually flowed, vary.

(1) In the event actual Gas flow at a receipt

or delivery point equals the scheduled

Gas flow at that point, then all Shippers

will receive their confirmed nominations.

(2) In the event actual Gas flow at a receipt

or delivery point is less than scheduled

Gas flow at that point, actual Gas flow

will be allocated as follows: The volume

of gas scheduled for delivery by

Chandeleur shall be allocated pro rata

based on the scheduled quantities up to,

but not in excess of, scheduled confirmed

quantities.