Granite State Gas Transmission, Inc.

Third Revised Volume No. 1

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Effective Date: 10/26/1999, Docket: RP99-509-000, Status: Effective

Third Revised Sheet No. 278 Third Revised Sheet No. 278 : Effective

Superseding: Second Revised Sheet No. 278

GENERAL TERMS AND CONDITIONS

(continued)

26. NOMINATIONS AND SCHEDULING OF TRANSPORTATION SERVICES

(continued)

among Transporter's other first-come, first-served Shippers

requesting quantities of gas to be scheduled in excess of the

applicable contractual entitlement of Shipper. For purposes

of comparing nominations based on price, a negotiated rate

Customer paying a rate higher than the maximum recourse rate

will be deemed to be paying a rate equal to such maximum

recourse rate.

(f) Among Firm Transportation Shippers requesting

quantities of gas to be scheduled in excess of

the contractual entitlements of such Shippers.

Upon completion of such procedure, Transporter shall notify

each Shipper of their quantities available under each of

Transporter's rate schedules. A Shipper receiving interruptible

transportation service shall not lose its priority for purposes

of this Section 8 by the renewal or extension of the term of

that service; provided, however, Shipper's preexisting priority

shall not apply to any increase in transportation quantity or

new point of delivery. Shipper shall not lose priority by

adding or changing receipt point(s) applicable to that service;

provided, however, a Shipper receiving interruptible transportation

service shall not have priority for service from the new receipt

point(s) over a preexisting firm or interruptible transportation

customer receiving service from that point(s).

26.10 Allocation of Limited Capacity

If, on any day or month, due to any cause whatsoever,

Transporter determines that the capacity of its system,

or any portion thereof including the points at which gas

is tendered for transportation is insufficient to serve

all transportation requirements which are otherwise scheduled

to receive service on such day, then any capacity which

requires allocation shall be allocated by contract and

location in a manner which results in curtailment of

capacity to zero, if necessary, first to the last quantities

schedule, and then sequentially in reverse order to the

scheduling provided for in Section 9. If capacity must

be allocated within the services included in (a), (b), (c),

(d), and (f) of Section 9, such services shall be curtailed

on a pro-rata basis within each service based upon quantities

of gas schedule by such Shippers, unless another method

of allocation (i.e. ranked, percentage, swing, or operator

provided value) is agreed upon by the transporter and other

party. If capacity must be allocated within the services

included in (e) of Section 9, such services shall be curtailed

according to the price ranking used for scheduling.