Discovery Gas Transmission LLC

Original Volume No. 1

Effective Date: 08/01/1998, Docket: RP98-266-000, Status: Effective

First Revised Sheet No. 138 First Revised Sheet No. 138 : Effective

Superseding: t No. 138

8. ALLOCATION OF MEASURED GAS QUANTITIES

8.1 ALLOCATION OF MEASURED RECEIPTS AND DELIVERIES - Promptly

at the end of each Month, Transporter will allocate the

daily quantity of Gas measured at each Receipt Point and

each Delivery Point for the account of Shipper under each

Service Agreement. To the extent possible, all

quantities of Gas measured at each Receipt Point and each

Delivery Point will be allocated on the basis of

Shipper's confirmed nominations. In the event the

quantities of Gas measured at any Receipt Point or any

Delivery Point do not equal the confirmed nominations for

such point, the quantities of Gas measured at the Receipt

Point or the Delivery Point will be allocated in

accordance with the following methods and in the

following order: (1) under the provisions of an

Operational Balancing Agreement, (2) on the basis of a

Predetermined Allocation, or (3) pro rata to Firm

Shippers, or (4) pro rata to Interruptible Shippers on

the basis of confirmed nominations.

8.2 OPERATIONAL BALANCING AGREEMENTS - Transporter is willing

to negotiate an Operational Balancing Agreement (OBA)

with any Operator for the purpose of minimizing

operational imbalances and/or resolving other matters

with respect to the receipt of Gas into, or the delivery

of Gas from, Transporter's System. The OBA must specify

the Gas custody transfer procedures to be followed by

Transporter and the Operator for the confirmation of

nominated quantities and allocation of quantities of Gas

measured at the point(s) of interconnection between

Transporter and the Operator. The OBA will provide that

any variance between quantities of Gas measured and

confirmed nominations for any Day will be promptly

resolved in-kind or on a cash basis. To facilitate the

determination of variances on a timely basis, Transporter

and the Operator will agree on necessary measurement,

allocation, and accounting procedures, and set forth such

procedures in the OBA. Transporter will post on its

Internet web site (web site) the Receipt Points and

Delivery Points where an OBA is in effect.