Gulf States Transmission Corporation

Original Volume No. 1

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

Second Revised Sheet No. 53A Second Revised Sheet No. 53A : Effective

Superseding: Sub First Revised Sheet No. 53A

GENERAL TERMS AND CONDITIONS (Continued)

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

15.21 Allocation Methodology

(a) There are two types of allocations: daily and monthly.

(b) The same standard allocation methodologies shall be available

for use at all points.

Transporter and Shipper may agree. If the two parties cannot

agree upon an allocation methodology, pro rata based upon

confirmed nominations shall be used as the default method. The

party responsible for custody transfer (the party performing the

measurement function) shall provide the allocation.

(d) The Transporter shall accept NAESB-approved allocation

methodology types from the upstream or downstream custody

transfer party who is providing the point confirmation.

(e) When a nomination changes, a new allocation detail may be needed.

(f) The timing for reporting daily operational allocations after the

gas has flowed is within one business day after end of gas day.

If the best available data for reporting daily operational

allocations is the scheduled quantity, that quantity shall be

used for the daily operational allocation.

(g) The responsibility for calculation and reporting of allocated

quantities should rest with the party responsible for accepting

NAESB allocation types. The party receiving nominations should

provide allocation statements.

(h) At a minimum, allocations shall be provided by both contract and

location.

(i) Delivery point allocations shall be performed at the lowest level

of detail provided by nominations.

(j) The data elements should accommodate multi-tier allocations. If a

transportation service provider chooses to support multi-tier

allocations or already accepts multi-tier allocations, the data

elements should accommodate it.