Columbia Gulf Transmission Company

Second Revised Volume No. 1

Effective Date: 08/01/1999, Docket: RP99-356-000, Status: Effective

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

Superseding: Substitute Original Sheet No. 166A

GENERAL TERMS AND CONDITIONS (Continued)

8.3 Predetermined Allocation Method (PDA).

(a) As used in this Section 8, a PDA is an agreement by or among any point operators,

prior to the beginning of the Gas Day, at a receipt or delivery point to allocate the difference

between the scheduled daily quantity and the actual daily flow of gas in a mutually agreeable

manner. Types of allocation methodologies is a list from which two parties may agree, and include,

but are not limited to, Ranked, Pro Rata, Percentage, Swing and Operator Provided Value. If the two

parties cannot agree upon an allocation methodology, pro rata based upon confirmed nominations shall

be used as the default method. The party responsible for custody transfer (the party performing the

measurement function) shall provide the allocation. PDA's shall be provided by the interconnecting

operator, and for multi-tiered allocations, may be provided by the upstream title holders or

shippers. Interconnecting operators at receipt locations shall provide a PDA to allocate to

upstream title holders. Upstream title holders may provide a PDA to allocate to the parties taking

possession of their gas at a receipt location. Shippers may provide a PDA to allocate to their

nominations at either receipt or delivery locations.