Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-361-001, Status: Effective

Third Revised Sheet No. 135 Third Revised Sheet No. 135 : Effective

Superseding: Superseding Second Revised Sheet No. 135

GENERAL TERMS AND CONDITIONS

(Continued)

period on each day, Transporter will evaluate all timely daily

nominations in light of the estimated demand for higher prior

services and capacity expected to be available on the ensuing

day and will schedule nominated service levels first to firm

services up to confirmed nominations, not to exceed any MDQ in

the applicable service agreement. If for any reason there is

not sufficient capacity available for firm service, the

available capacity will be allocated among firm requests pro

rata based on confirmed nominations, first to primary firm

service, then to supplemental firm service. Next, Transporter

will schedule any capacity which remains to interruptible

services up to the level of available capacity on a first come,

first served ("FC, FS") basis by the Valid Request Date of the

underlying ITS Agreement as established pursuant to Section 6.1.

In the event of lower than expected demand for higher priority

services, or any other cause, Transporter determines on any

service day that it is able to offer greater levels of service

hereunder than had been scheduled, Transporter may offer such

services on a FC, FS basis (by Valid Request Date) to the extent

practicable to Shippers whose nominations had not been scheduled

and then as AOT pursuant to Section 16. In the event there is

not enough capacity available for all AOT services, the

remaining available capacity will be allocated among AOT

requests pro rata based on confirmed nominations. At the end of

each Day, Transporter shall make available on the Customer

Electronic System, or EDI, scheduled quantities including

scheduled intra-day nominations and any other scheduling

changes. Transporter will utilize the Customer Electronic

System for scheduling communications with Customer unless the

Customer has executed a Trading Partner Agreement to communicate

scheduling matters via EDI.

Section 6 herein to provide the notification information set

forth in this Section to Transporter. If Shipper designates

another person to provide this information, Transporter shall be

entitled to rely on the scheduling contact previously provided

by Shipper unless and until Transporter receives written notice

to the contrary.