ANR Pipeline Company

Second Revised Volume No. 1

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Effective Date: 11/01/2006, Docket: RP06-613-000, Status: Effective

Seventeenth Revised Sheet No. 120 Seventeenth Revised Sheet No. 120 : Effective

Superseding: Sixteenth Revised Sheet No. 120

GENERAL TERMS AND CONDITIONS

(Continued)

sequential order, utilizing the Priority Classes defined below: (1) to

Priority Class One nominations, pro rata if necessary, up to MDQ; then

(2) sequentially by class to Priority Classes Two through Four

nominations, up to MDQ, on the basis of Confirmed Price; and then (3)

to Priority Class Five nominations on the basis of Confirmed Price.

Transporter will also determine whether or not there is available

capacity at the receipt or delivery points associated with the

services that have been preliminarily allocated mainline capacity

pursuant to this Section 10.1(a). In the event that insufficient

capacity exists at a point to accommodate all nominations, the

available capacity at the point will be allocated: (1) to firm Primary

Point nominations, pro rata if necessary; then (2) to firm Secondary

Point nominations on the basis of Confirmed Price; and then (3) to

interruptible/overrun nominations on the basis of Confirmed Price,

provided that in the event of an equal Confirmed Price within either

(2) or (3), above, the capacity will be allocated pro rata. Upon

completion of this allocation process, each service will be scheduled

at a level of entitlements equal to the lesser of the mainline or

point capacity that has been allocated to such service.

(b) The Priority Classes of service to be used for scheduling purposes

shall be as follows:

Priority Class One. All Part 157 firm service nominations; all firm

catalog nominations; and all Part 284 firm service nominations

(including Rate Schedule FTS-2 when scheduled as firm) to points only

within the Primary Route. Notwithstanding the above, the following

scheduling priorities shall apply to firm catalog nominations received

by Transporter in each Pooling Area:

1. Rate Schedule PTS-2 nominations within the Primary Route;

2. Rate Schedule PTS-1 nominations within the Primary Route.

Priority Class Two. All Part 284 firm service nominations (including

Rate Schedule FTS-2 when scheduled as firm); and all Rate Schedule

PTS-2 and PTS-1 nominations to any points outside of the Primary

Route.

Priority Class Three. Rate Schedule FTS-2 service (when not scheduled

as firm) to points only within the Primary Route.

Priority Class Four. Rate Schedule FTS-2 service (when not scheduled

as firm) to any points outside of the Primary Route.

Priority Class Five. Interruptible and overrun.