Columbia Gulf Transmission Company

Second Revised Volume No. 1

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

Ninth Revised Sheet No. 163 Ninth Revised Sheet No. 163 : Suspended

Superseding: Eighth Revised Sheet No. 163

GENERAL TERMS AND CONDITIONS (Continued)

7.3 Internal Points. For transportation capacity at internal 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 Rate

Schedule priority groupings set forth below, and (ii) allocate among Shippers offering the same rate within

those Rate Schedule priority groupings in the order and manner set forth below:

(a) Rate Schedules FTS-1 and FTS-2 and Firm X-Rate Schedules.

(i) Primary Path nominations.

(ii) Secondary Path nominations.

(b) Rate Schedules ITS-1 and ITS-2, Overrun Quantities Under Rate Schedules FTS-1 and FTS-2, X-Rate

Schedules, and Rate Schedules PAL and IMS. Transporter shall allocate capacity in the order and manner set

forth in Section 7.2(c) above.

7.4 Transportation Receipt Points. Transporter shall allocate capacity at all receipt points under its

Rate Schedules (i) sequentially among the Rate Schedule priority groupings set forth below, and (ii) among

Shippers offering the same rate within those Rate Schedule priority groupings, in the order and manner set

forth below:

(a) Rate Schedules FTS-1 and FTS-2 and Firm X-Rate Schedules. For capacity at primary receipt

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

Transporter, upon the occurrence of a force majeure event or the existence of a condition identified in

Section 16 (Interruptions of Service) of the General Terms and Conditions, shall allocate such capacity to

Shippers under the FTS-1 and FTS-2 and firm X-Rate Schedules set forth in Volume No. 2 of this Tariff on a

pro rata basis, based upon each such Shipper's respective Transportation Demand.

(b) Secondary Receipt Points Under Rate Schedules FTS-1 and FTS-2. Transporter shall allocate

capacity among Shippers requesting capacity at secondary receipt points under the FTS-1 and FTS-2 Rate

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

respective nominated quantities. Where requested receipt point capacity at the highest rate exceeds

Transporter's capacity at secondary receipt 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).

Interruptible X-Rate Schedules. Where Shippers have requested receipt point capacity commencing on the first

Day of the Month for (i) quantities under the ITS-1 or ITS-2 Rate Schedules (ii) overrun quantities under the

FTS-1 or FTS-2 Rate Schedules, or (iii) interruptible quantities under interruptible X-Rate Schedules set

forth in Volume No. 2 of this Tariff, Transporter shall award capacity to the Shippers paying the highest

rate. Among Shippers of this class paying the same rate, Transporter shall allocate capacity in the manner

described at Section 7.2(c) above.