Gulf States Transmission Corporation

Original Volume No. 1

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Effective Date: 10/01/2002, Docket: RP02-431-000, Status: Effective

Third Revised Sheet No. 52 Third Revised Sheet No. 52 : Effective

Superseding: Sub Second Revised Sheet No. 52

GENERAL TERMS AND CONDITIONS (Continued)

15. SERVICE NOMINATIONS AND ALLOCATION OF AVAILABLE CAPACITY (continued)

15.11 Intra-day Nominations

(a) Shippers may each day submit intra-day nominations in accordance with

applicable NAESB standards.

(b) All nominations, including intra-day nominations, should be based on a

daily quantity; thus, an intra-day nominator need not submit an hourly

nomination. Intra-day nominations should include an effective date and

time. The interconnected parties should agree on the hourly flows of the

intra-day nomination, if not otherwise addressed in transporter's

contract or tariff.

(c) Intra-day nominations can be used to request increases or decreases in

total flow, changes to receipt points, or changes to delivery points of

scheduled gas.

(d) Intra-day nominations do not rollover (i.e. intra-day nominations span one

day only). Intra-day nominations do not replace the remainder of a standing

nomination. There is no need to re-nominate if intra-day nomination

modifies existing nomination.

(e) Bump Protection: Transporter shall not schedule an Intra-day nomination

change if the result of scheduling such nomination would be to bump

flowing and/or scheduled transportation under any firm service.

Transporter shall give an intra-day nomination submitted by a firm

shipper priority over nominated and scheduled volumes for shippers

flowing volumes with a priority below firm service. Transporter shall

provide bump notice to bumped shipper(s) by 2:00 p.m. as to CCT as to

intra-day nominations submitted at 10:00 a.m. CCT and by 10:00 a.m. CCT

as to intra-day nominations submitted at 6:00 p.m. CCT. Transporter will

not permit bumping for intra-day nominations submitted by the 5:00 p.m.

CCT deadline to be effective at 9:00 p.m. CCT. Transporter shall provide

bump notice by the notice procedures set forth in Article 12, Section

12.2(d) of the General Terms and Conditions to the bumped shipper(s).

Such notice will further state whether daily penalty provisions will

apply on the day on which a Shipper's volumes are reduced.

15.2 Monthly Allocation of Capacity

In reaching its monthly determination of capacity which Transporter anticipates

that it will have available to satisfy Shippers' requests for services,

Transporter will utilize the following order of priority and procedure:

(a) In the event that Transporter is required to allocate capacity on its

system, it shall give first priority to quantities under its firm

transportation rate schedules. For capacity not allocated under the open-

season, or for capacity which later becomes available, priority among firm

Shippers will be established on a first-come, first-served basis. To the

extent capacity remains, it shall be allocated to interruptible services

as set forth in Section 15.2(c).

(b) Should it become necessary to curtail service among firm shippers,

Transporter will curtail service ratably.

(c) In allocating capacity under Section 15.2(a) among interruptible

Shippers, or curtailing service under Section 15.4 among interruptible

Shippers, transporter may give priority based on Shipper's willingness to

pay the highest unit rate for such service (not to exceed the maximum

rate for such service set forth in Transporter's applicable rate

schedule) with Shippers willing to pay the highest unit rate receiving

first priority and so on.