Mobile Bay Pipeline Company

Second Revised Volume No. 1

Effective Date: 02/01/1994, Docket: GT94- 18-000, Status: Effective

Original Sheet No. 160 Original Sheet No. 160 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

(1) Will be allocated to the confirmation path

designated in the Operator PAA, as described in

Section 9.5(a)(1). If multiple confirmation paths

are designated, then quantities will be allocated

pro rata based on confirmed nominations. Quantities

allocated in excess of Confirmed Quantities that

exceed Customer's MDQ shall be unauthorized

quantities and subject to the charges and fees

prescribed in Section 17 of the General Terms and

Conditions. Quantities allocated in excess of

Confirmed Quantities but equal to or less than the

Customer's MDQ shall be treated as an imbalance and

subject to the penalties in Section 13 of the

General Terms and Conditions.

Measured Quantities are less than Confirmed Quantities,

then no Shippers shall receive quantities above their

Confirmed Quantities. The Measured Quantities will be

allocated first to the confirmation paths with the highest

priority, as designated in the Operator PAA. If any

Measured Quantities remain, such quantities will be

allocated to the next highest priority confirmation path,

and this process will continue until Measured Quantities

equal allocated quantities. If there are multiple

confirmation paths with the same priority, then a pro rata

allocation up to Confirmed Quantities will be used.

Allocated Quantities less than Confirmed Quantities shall

be treated as an imbalance and subject to the penalties in

Section 13 of the General Terms and Conditions.

(d) The quantities allocated to each confirmation path at each

meter station for the day shall be the Confirmation Path

Allocated Quantity ("CPAQ").

9.7 Further Allocation Pursuant to the Shipper PAA -If a Shipper has

multiple scheduled nominations at an SLN and has provided a

timely PAA, then the CPAQ, as determined in Section 9.6(d), will

be further allocated to scheduled nominations as follows: