Dauphin Island Gathering Partners

Original Volume No. 1

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Effective Date: 12/23/1997, Docket: RP98- 17-000, Status: Effective

Original Sheet No. 167 Original Sheet No. 167 : Effective

Superseding: Original Sheet No. 167

The "TETCO Index Price" (in $/Dth) is equal to the

following price published during the month in which

Shipper's Net Monthly Imbalance was incurred. The

price used for the determination of the TETCO Index

Price shall be the daily price as published each

day in Gas Daily in the column "Midpoint", in the

section "Daily Price Survey" under "Louisiana -

Onshore South" for Texas Eastern Transmission

Corporation, "Texas E. (ELA)".

For Transportation Service Agreement(s) applicable

to Transporter's MP Facility, the Shipper's Net

Monthly Imbalance shall be pro rated between the

onshore Alabama Delivery Point and the Delivery

Point to Texas Eastern Transmission Corporation at

Main Pass Block 164, based upon the quotient of (i)

the quantity of gas delivered under Shipper's

Transportation Service Agreement for Shipper's

account at each such Delivery Point for the month

and (ii) the total quantity of gas delivered under

Shipper's Transportation Service Agreement at both

Delivery Points for the month ("Proration Factor").

A monthly cash out amount for each Transportation

Service Agreement applicable to the MP Facility

will be calculated based upon the sum of (i) the

Coden Index Price multiplied by the applicable

Proration Factor and (ii) the TETCO Index Price

multiplied by the applicable Proration Factor,

multiplied by Shipper's Net Monthly Imbalance.

A monthly cash out amount for each Transportation

Service Agreement applicable to the DI Facility

will be calculated based upon the Coden Index Price

multiplied by Shipper's Net Monthly Imbalance.

In the event this publication or specific postings

contained therein are discontinued, are not

representative of market conditions, or as Delivery

Points are added to or removed from Transporter's

Facility, Transporter will revised this Subsection

13.3(d) to substitute another price index generally

accepted in the natural gas industry. Until

Transporter receives approval from the Commission

to use such substitute index, Transporter will

continue to calculate the Index Price each month

based on the remaining representative indexes.

(e) No imbalance penalty should be imposed when a prior

period adjustment applied to the current period

causes or increases a current month penalty.