Columbia Gulf Transmission Company

Second Revised Volume No. 1

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

Third Revised Sheet No. 164 Third Revised Sheet No. 164 : Effective

Superseding: Second Revised Sheet No. 164

GENERAL TERMS AND CONDITIONS (Continued)

(d) In regard to intraday nominations, Transporter shall allocate capacity in the manner described

in Section 7.2(f) above.

7.5 Aggregation Points. Where aggregation points are the points of delivery under Shipper's Service

Agreements, Transporter shall allocate capacity among such Shippers in accordance with the corresponding

priority held by the downstream shippers at the respective aggregation points.

7.6 Receipt Points Under the AS-Gulf, IPP-Gulf, and PAL Rate Schedules. If there is insufficient

capacity to satisfy all nominations at a receipt point, including nominations under AS-Gulf, IPP-Gulf, and

PAL, Transporter shall allocate capacity first to nominations under Rate Schedules AS-Gulf and IPP-Gulf,

then, if capacity is still available, to nominations under Rate Schedule PAL. If there is insufficient

capacity to satisfy all AS-Gulf, IPP-Gulf, and PAL nominations, such nominations shall be rejected and

holders of rejected nominations for AS-Gulf, IPP-Gulf, and PAL service will be notified so that they can

(i) arrange for or implement a transfer between pools pursuant to the AS-Gulf or IPP-Gulf Rate Schedules;

(ii) arrange for an imbalance transfer pursuant to Section 18 (Imbalance Transfers) of the General Terms

and Conditions; (iii) arrange for a Predetermined Allocation Method (PAM) pursuant to Section 8.2 (Receipt

Point Allocation) of the General Terms and Conditions; (iv) renominate directly from such receipt point

(and not from the AS-Gulf or IPP-Gulf pool); or (v) make other arrangements agreed to by Transporter.

7.7 Allocations Based on Price. For purposes of allocating capacity pursuant to Sections 7.2(c)(1)

and (2), 7.3, and 7.4(c), Shippers paying more than the Recourse Rate will be considered to be paying the

Recourse Rate.

7.8 Primary Path and Secondary Path. For purposes of this Section 7 of the General Terms and

Conditions, "Primary Path" shall mean the portion of capacity physically located between the designated

primary receipt point and primary delivery points of Shippers and takes into account the direction of flow

from the primary receipt point to the primary delivery point. If a point of constraint is within the

Primary Path, and the nominated path is in the same flow direction as the Primary Path, and the nominated

path overlaps the Primary Path at the point of constraint, then the nomination shall be considered as

primary for capacity allocation purposes. For purposes of this Section 7, "Secondary Path" shall mean any

nominated path other than a Primary Path.