American Midstream (Midla), LLC

Sixth Revised Volume No. 1

Effective Date: 05/01/2010, Docket: RP10-483-000, Status: Effective

Original Sheet No. 169 Original Sheet No. 169

16. ALLOCATION PROCEDURES

16.1 In the event that Gas is scheduled for any Day to be received or delivered by

Pipeline at Point(s) of Receipt or Point(s) of Delivery on Pipeline's system for Customer,

Pipeline shall allocate quantities received or delivered as set forth in Paragraph 16.2 and

make such daily operational allocations available within one (1) Business Day after the

end of the Gas Day. Allocated quantities and imbalances should be expressed in the

same units as the nominated quantities. In the event that the allocation information as

specified in the provisions of Paragraph 16.2 is not provided, the Pipeline shall allocate

actual quantities as set forth in the provisions of Paragraph 16.3.

16.2 (a) Pipeline shall allocate on each Day actual Gas quantities received or delivered

by Pipeline among all scheduled quantities. Such allocations shall be based on 1) the

existence of an OBA at the affected point or location; or 2) in the absences of an OBA,

such allocation shall be based on the PDA(s) submitted to Pipeline during the Business

Day prior to such Gas Day by Customer, Customer's Agent or the Point Operator. Such

PDA(s) may be submitted to Pipeline in writing or electronically. A PDA, whether

submitted by Customer, Customer's Agent or the Point Operator, upstream or

downstream custody transfer party who is providing the point confirmation shall be a

NAESB approved allocation methodology type, contain the standardized data elements

as defined by NAESB and, shall set forth sufficient information to describe the allocation

priority for each Point of Receipt and Point of Delivery when actual quantities received or

delivered exceed scheduled quantities, and shall set forth sufficient information to

describe the allocation priority for each Point of Receipt and Point of Delivery when

actual quantities received or delivered are less than scheduled quantities. PDA's

submitted to Pipeline shall be acknowledged to transmitter within fifteen (15) minutes of

receipt.

(b) It shall be the obligation of Customer to ensure that Customer's Agent and/or the

Point Operator comply with the provisions of this Section 16. In the event that a Point

Operator is responsible for scheduling receipts or deliveries at Point(s) of Receipt or

Point(s) of Delivery, Pipeline shall first rely on a PDA submitted by Customer. In the

event that Customer has designated an Agent for scheduling of receipts or deliveries,

then the PDA submitted by Customer's Agent shall have precedence over a PDA

submitted by Customer but such PDA