Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 06/01/1997, Docket: RP97-166-004, Status: Effective

First Revised Sheet No. 166 First Revised Sheet No. 166 : Effective

Superseding: Original Sheet No. 166

GENERAL TERMS AND CONDITIONS (Continued)

8. METER ALLOCATIONS

This Section specifies the procedures for allocating any differences between (i) the

aggregate of all Shippers' Confirmed Daily Delivery Quantities and actual deliveries, and (ii) the

aggregate of all Shippers' Confirmed Daily Receipt Quantities and actual receipts (Difference(s))

at delivery points at which gas is being delivered to or for the account of Shippers or at receipt

points from which gas is being received by Transporter for the account of multiple Shippers. Unless

otherwise agreed to between Transporter and Confirming Party, actual allocations shall be based on

daily flow and shall be made using dekatherm units.

8.1 Delivery Point Allocation. The difference shall be allocated pro rata among all the Shippers

at that delivery point on the basis of those Shippers' Confirmed Daily Delivery Quantities, unless

Transporter has a written Predetermined Allocation Method (PDA) with the interconnecting interstate

pipeline or other entity at such delivery point specifying a different allocation methodology prior

to gas flow commencing.

8.2 Receipt Point Allocation.

(a) Differences at a receipt point shall be allocated pro rata among all Shippers at

that receipt point on the basis of the Scheduled Daily Receipt quantities unless the owner or

operator of such receipt point has provided to Transporter a written PDA specifying a different

allocation methodology and such methodology is approved by Transporter prior to gas flow commencing.

(b) A marketer, broker or other similar entity taking title to gas that is subsequently

sold prior to physical movement (marketing chain) may provide a PDA specifying the method to

distribute gas to its purchaser(s). The PDA methodology shall be provided to Transporter in writing

prior to the beginning of the Gas Day and subject to approval by Transporter, which approval shall

not be unreasonably withheld. Differences related to a marketer's, broker's or other similar

entity's gas at the receipt point shall be allocated pro rata unless a PDA is provided to and

approved by Transporter, which approval shall not be unreasonably withheld.