Destin Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 09/01/1998, Docket: CP96-655-003, Status: Effective

Original Sheet No. 74 Original Sheet No. 74 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

12.2 Allocating Daily Capacity:

(a) Capacity on COMPANY's system shall be allocated among the

various transportation services each day based on

nominations.

(b) If, on any day, COMPANY determines that the capacity of its

system, or any portion thereof, including Receipt and

Delivery Points, is insufficient to serve all nominations to

receive service that day, then the available capacity shall

be allocated among the nominated services on the following

basis, subject to the provision of Section 12.2(c) below.

COMPANY shall allocate capacity for receipts and deliveries

of gas in the priority categories specified below (listed in

highest to lowest priority order), such that any reductions

of service (Adjusted Nominations) will result in allocations

of available capacity to higher priority services before

lower priority services. Unless otherwise specified, the

allocation priority within a category shall be on a pro rata

basis:

(i) Transportation service at primary Exhibit A Receipt

Points and primary Exhibit B Delivery Points up to

the associated MDRQ and MDDQ under all SHIPPERS' FT-1

or FT-2 Service Agreements.

(ii) Transportation service at secondary Exhibit B-1

Delivery Points in the capacity path of SHIPPER's

primary Exhibit B Delivery Points to the extent that

the sum of each SHIPPER's nominations at its Exhibit

B and B-1 Delivery Points is not in excess of the TD

under SHIPPER's firm Service Agreement.