Mobile Bay Pipeline Company

Second Revised Volume No. 1

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Effective Date: 06/01/1997, Docket: RP97-361-000, Status: Effective

Second Revised Sheet No. 158 Second Revised Sheet No. 158 : Effective

Superseding: Superseding First Revised Sheet No. 158

GENERAL TERMS AND CONDITIONS

(Continued)

parties cannot agree upon an allocation

methodology, pro rata based upon confirmed

nominations should be used as the default

method. The party responsible for custody

transfer (the party performing the measurement

function) should provide the allocation. Two

welded parties shall agree on who submits a pre-

determined allocation methodology and who

allocates at the point before the gas flows.

and underages. Only one PDA allocation

methodology can be applied per allocation

period. The same standard allocation

methodologies shall be available for use at all

points. When the allocation method is rank,

swing or percentage, a new allocation detail may

be needed when a nomination changes.

to provide Transporter with a PDA as described

herein. In the event any Shipper at a point

fails to cause such information to be provided

by Operator to Transporter, then the default

allocation methodology described in Section 9.8

will be applied to all Shippers at the point.

Shippers with multiple scheduled nominations at

the point shall submit a PDA to Transporter for

purposes of further allocation. The PDA methods

shall include ranked, pro-rata, percentage, and

swing, as such terms are used in the GISB

standards. These methods will be available for

the use at all points, subject to the tariff

provisions in Section 9.1. Only one PDA

allocation methodology can be applied per

allocation period. If a Shipper having multiple

scheduled nominations at a point fails to

provide a PDA for purposes of further allocation

then the default allocation methodology

described in Section 9.8 will be used to

allocate the Shipper's multiple nominations at

the point.