Horizon Pipeline Company, L.L.C.

Original Volume No. 1

Effective Date: 04/18/2002, Docket: CP00-129-001, Status: Effective

Original Sheet No. 136 Original Sheet No. 136 : Effective

GENERAL TERMS AND CONDITIONS

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8. DETERMINATION OF DAILY RECEIPTS

8.1 To the extent feasible, all volumes received by

Horizon at a Receipt Point shall be allocated in accordance with

the confirmed nominations for that point. In the event the actual

volumes received by Horizon do not equal the confirmed nominations

for that point, any underage or overage will be allocated as

follows:

(a) First, in accordance with the effective

predetermined allocations (PDAs) submitted by those entities

(Allocators) owning or controlling the gas being delivered to

Horizon. An operational balancing agreement (OBA) is one type of a

PDA. Shipper agrees that such an allocation is binding on Shipper.

(b) Then, if there is no effective PDA, pro rata to

the extent applicable based on confirmed nominations or transfer

nominations, as applicable. Shipper agrees that such an allocation

is binding on Shipper.

8.2 The upstream or downstream party providing the point

confirmation should submit the PDA to the allocating party after

or during confirmation and before the start of the gas Day, except

that no other PDAs need be submitted if an OBA is in effect at a

point. Unless otherwise agreed, all PDAs must be submitted to

Horizon through DART or through EDI before the start of the gas

Day the PDA is to be effective. Such PDA shall specify how any

underage or overage from the confirmed nominated volumes should be

allocated among the entities listed on the PDA. Horizon shall

acknowledge receipt and acceptance of the PDA through DART or EDI

if received through DART or via EDI if received via EDI. Such

notification of acknowledgment and acceptance will be within

fifteen (15) minutes of receipt via DART if received via DART or

via EDI if received via EDI. Horizon's acceptance is contingent

on Horizon being able to administer the allocation submitted by

the Allocator. Allocation methodology types upon which two parties

may agree are: ranked, pro rata, percentages, swing and operator

provided value. Other examples of allocation methods which can be

used are matching of supply sources with specified customers, and

combinations of methodology types. Different methods may be

submitted for overages or underages. If the parties cannot agree,

Section 8.1(b) shall apply.