Horizon Pipeline Company, L.L.C.

Original Volume No. 1

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

Original Sheet No. 138 Original Sheet No. 138 : Effective

GENERAL TERMS AND CONDITIONS

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9. DETERMINATION OF DELIVERIES

9.1 PREDETERMINED ALLOCATIONS

In accounting for the volumes delivered by Horizon, in

circumstances where multiple services are provided at any Delivery

Point, the sequence of volumes delivered shall be determined by a

predetermined allocation agreement between Horizon and the operator of

the facilities immediately downstream of the point at which Horizon

delivers gas. 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. In the

absence of such an agreement, Sections 9.2 and 9.3 shall control. Any

new or proposed change to the methodology should be sent to Horizon

before the start of the gas Day on which the methodology is to be

effective. Horizon shall confirm receipt of the methodology within

fifteen (15) minutes 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 that can be used are combinations

of methodology types. Different methods may be submitted for overages

and underages.

9.2 DELIVERY SEQUENCE

Unless otherwise agreed, gas at any Delivery Point shall

be deemed to have been delivered in the following sequence:

(a) Volumes scheduled under firm transportation

Agreements consistent with confirmed nominations and within MDQ;

(b) Volumes scheduled under interruptible transportation

Agreements consistent with confirmed nominations and within MDQ;

nominations;

(d) Additional volumes shall be allocated pro rata based

on confirmed nominations, but not to exceed the applicable MDQ, among

ITS Agreements under which Shippers nominated that day; and

(e) Any remaining volumes shall be allocated as

Unauthorized Overrun Gas pro rata based on confirmed nominations among

ITS Agreements under which Shippers nominated that day.