Iroquois Gas Transmission System, L.P.

FIRST REVISED VOLUME NO. 1

Effective Date: 08/01/1997, Docket: RP97-161-007, Status: Effective

Second Revised Sheet No. 64 Second Revised Sheet No. 64 : Effective

Superseding: SUBSTITUTE FIRST REVISED SHEET NO. 64

unauthorized daily overrun taken by Shipper at such Delivery

Point. Transporter will waive this penalty on a basis which

is not unduly discriminatory if, in the exercise of its

reasonable discretion, Transporter determines that such

action by Shipper did not cause operational difficulties or

affect the integrity of Transporter's system or Transporter's

ability to render scheduled service on such day.

6.4 Predetermined Allocation Method.

(a) Transporter may negotiate and enter into OBAs

with interstate pipelines, intrastate pipelines and other

entities. Transporter will not utilize pre-determined

allocations ("PDA") if Transporter has an OBA in effect for a

point. No difference balanced in-kind shall be allocated to any

Shipper at the Receipt or Delivery Points covered by the OBA.

PDA elements should be standardized. Only one PDA allocation

methodology should be applied per allocation period.

(b) As used in this Section 4, a PDA is an

agreement by or among point operators, prior to the beginning of

the gas day, at a Receipt or Delivery Point to allocate the

difference between the scheduled daily quantity and the actual

daily flow of gas in a mutually agreeable manner. Types of

allocation methods include, but are not limited to, ranked, pro

rata, percentage and swing. PDAs shall be provided by the

interconnecting operator, and for multi-tiered allocations, may

be provided by the upstream title holders or Shippers.

Interconnecting operators at Receipt Points shall provide a PDA

to allocate to upstream title holders. Upstream title holders

may provide a PDA to allocate to the parties taking possession of

their gas at a Receipt Points. Shippers may provide a PDA to

allocate to their nominations at either Receipt or Delivery

Points. Two welded parties should agree on who submits a PDA

methodology and who allocates at the point before gas flows. The

upstream or downstream party providing the point confirmation

should submit the pre-determined allocation to the allocating

party after or during confirmation and before start of gas day.

The allocating party should send back "confirmation" of receipt

of the pre-determined allocation within 15 minutes.

allocation methodology, "pro rata based upon confirmed

nominations" shall be used as the default method.