Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 04/01/2004, Docket: RP00-326-004, Status: Suspended

Fourth Revised Sheet No. 161 Fourth Revised Sheet No. 161 : Suspended

Superseding: Third Revised Sheet No. 161

GENERAL TERMS AND CONDITIONS (Continued)

7. CAPACITY ALLOCATION

This Section sets forth the manner in which Transporter shall allocate capacity among its Rate

Schedules when it has received nominations from Shippers that exceed available capacity.

7.1 General Priority. Transporter shall allocate capacity on its system in the following order commencing

with the highest priority:

(a) capacity at delivery points;

(b) capacity at any point between the receipt points and delivery points ("internal point") that

is restricted, beginning with the point closest to the delivery point if capacity at more than one internal

point is restricted; and

7.2 Transportation Delivery Points. For transportation capacity at delivery points under Rate Schedules

FTS-1, FTS-2, ITS-1, ITS-2, PAL, IMS, and X-Rate Schedules, Transporter shall (i) allocate capacity

sequentially among the Rate Schedule priority groupings set forth below and (ii) allocate among customers

paying the same rate within those Rate Schedule priority groupings, in the order and manner set forth below:

(a) Rate Schedules FTS-1, FTS-2 and Firm X-Rate Schedules. For deliveries to primary delivery

points under the FTS-1, FTS-2 Rate Schedules, and under firm X-Rate Schedules set forth in Volume No. 2 of this

Tariff, upon the occurrence of a force majeure event or the existence of a condition identified on Section 16

(Interruptions of Service) of the General Terms and Conditions, Transporter shall allocate capacity among those

Shippers on a pro rata basis, based upon those Shippers' respective levels of Transportation Demand.

(b) Secondary Delivery Points Under Rate Schedules FTS-1 and FTS-2. For deliveries to secondary

delivery points under the FTS-1 and FTS-2 Rate Schedules, Transporter shall allocate capacity first to Shippers

with secondary delivery points within the Primary Path of such Shippers. Transporter shall award capacity to

those Shippers sequentially beginning with the highest rate, based upon those Shippers' respective nominated

quantities. Where requested deliveries at the highest rate exceed Transporter's capacity at secondary delivery

points, Transporter shall allocate such capacity first to those Shippers flowing gas on a pro rata basis, based

upon each such Shipper's respective confirmed nominations, and second to all remaining Shippers based upon the

order in which Transporter received nominations from those Shippers (equally to any Shippers submitting

nominations within the same Nomination Cycle on the same day). Any remaining capacity shall then be allocated

to Shippers with secondary delivery points outside the Primary Path of such Shippers. Transporter shall award

capacity to those Shippers sequentially beginning with the highest rate, based upon those Shippers' respective

nominated quantities. Where requested deliveries exceed Transporter's capacity at secondary delivery points,

Transporter shall allocate such capacity first to those Shippers flowing gas on a pro rata basis, based upon

each such Shipper's respective confirmed nominations, and second to all remaining Shippers based upon the order

in which Transporter received nominations from those Shippers (equally to any Shippers submitting nominations

within the same Nomination Cycle on the same day). These priorities shall apply where Shipper's aggregate

deliveries at primary and secondary delivery points do not exceed Shipper's Transportation Demand.