Columbia Gulf Transmission Company

Second Revised Volume No. 1

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Effective Date: 07/01/2003, Docket: RP00-326-004, Status: Effective

Fifth Revised Sheet No. 162A Fifth Revised Sheet No. 162A : Effective

Superseding: Fourth Revised Sheet No. 162A

GENERAL TERMS AND CONDITIONS (Continued)

(c) Shippers choosing not to match the higher rate only have to renominate once the capacity

again becomes available to resume flowing to the discounted rate.

(d) In cases where there are multiple Shippers flowing interruptible quantities at the same

discounted rate, Transporter shall reduce quantities pro rata based on their scheduled quantities at the

nomination deadline.

(e) Shipper bumped under these provisions will not be subject to penalties unless they fail to

conform their physical flow to the newly scheduled quantities.

(f) If intraday nominations require an allocation of the pipeline system, the following will

describe the circumstances that allow a higher priority service to bump a lower priority service.

(1) Evening Nomination Cycle: For nominations received by 6:00 p.m. (C.T.) and to be

effective at the start of the upcoming gas day, nomination increases at a primary point under Rate

Schedules FTS-1 and FTS-2 will not bump nominations at a secondary point under Rate Schedules FTS-1

and FTS-2 that are submitted and scheduled within the Timely Nomination Cycle. Nomination increases

submitted under Rate Schedules FTS-1 and FTS-2 whether at primary or secondary points will have

priority over nominated and scheduled quantities under Rate Schedules ITS-1, ITS-2, IPP-Gulf, AS-Gulf

and FTS-1 and FTS-2 overruns and may bump such quantities effective at 9:00 a.m. (C.T.) the next day.

Nomination increases submitted under Rate Schedules ITS-1, ITS-2, IPP-Gulf, AS-Gulf and FTS-1 and

FTS-2 overruns shall be subject to available unscheduled capacity and will not bump scheduled

quantities. Transporter shall notify Shippers being bumped as a result of intraday nominations by

10:00 p.m. (C.T.).

(2) Intraday 1 Nomination Cycle: For nominations received by 10:00 a.m. (C.T.) and to be

effective at 5:00 p.m. (C.T.) on the current gas day, nomination increases at a primary point under

Rate Schedules FTS-1 and FTS-2 will not bump nominations at a secondary point under Rate Schedules

FTS-1 and FTS-2 that are submitted and scheduled within the Timely Nomination Cycle or Evening

Nomination Cycle. Nomination increases submitted under Rate Schedules FTS-1 and FTS-2 whether at

primary or secondary points will have priority over nominated and scheduled quantities under Rate

Schedules ITS-1, ITS-2, IPP-Gulf, AS-Gulf and FTS-1 and FTS-2 overruns and may bump such quantities

effective at 5:00 p.m. (C.T.) on the current gas day. Nomination increases submitted under Rate

Schedules ITS-1, ITS-2, IPP-Gulf, AS-Gulf and FTS-1 and FTS-2 overruns shall be subject to available

unscheduled capacity and will not bump scheduled quantities. Transporter shall notify Shippers being

bumped as a result of intraday nominations by 2:00 p.m. (C.T.).

(3) Intraday 2 Nomination Cycle: For nominations received by 5:00 p.m. (C.T.) and to be

effective at 9:00 p.m. (C.T.) on the current gas day, nomination increases regardless of Rate

Schedule shall be subject to available unscheduled capacity and shall not bump scheduled quantities

under any Rate Schedule.

(g) Transporter shall notify parties that are bumped during the Evening and Intraday 1 Nomination

Cycles by providing the scheduled quantities information and Transporter should provide affected parties

with notification of intraday bumps, operational flow orders and other critical notices through Shipper's

choice of Electronic Notice Delivery mechanism(s). Unless Shipper and Transporter have agreed to exclusive

notification via EDI/EDM, Shipper should provide Transporter with at least one Internet E-mail address to be

used for Electronic Notice Delivery of intraday bump, operational flow orders and other critical notices.

The obligation of Transporter to provide notification is waived until the above requirement has been met.

Transporter should support the concurrent sending of electronic notification of intraday bump, operational

flow orders and other critical notices to two Internet E-mail addresses for each Shipper. Intraday bump

notices should indicate whether daily penalties will apply for the gas day for which quantities are reduced.

(h) Rate Schedule PAL. To the extent capacity is available for parking or lending at delivery

points under Rate Schedule PAL after Transporter has satisfied all nominations under Rate Schedules FT-1, FT-

2, ITS-1, ITS-2, AS-Gulf, and IPP-Gulf, Transporter shall allocate capacity among those Shippers, on a pro

rata basis, based upon those Shippers' respective nominated quantities.