Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 09/01/2005, Docket: RP05-436-000, Status: Effective

Fifth Revised Sheet No. 112 Fifth Revised Sheet No. 112 : Effective

Superseding: Fourth Revised Sheet No. 112

GENERAL TERMS AND CONDITIONS

(Continued)

7. CONDITIONS OF RECEIPT AND DELIVERY (Continued)

7.7 Predetermined Allocations - Receipts

(a) A receipt point operator or Pool Operator, depending on

whether the tender of gas will be at a physical receipt point or from a

pool, will be required to provide to MRT a "predetermined allocation

(PDA) methodology" for the gas to be received. Upon thirty (30) days'

notice provided via posting on MRT's Internet web site, MRT may require

receipt point operators and Pool Operators to provide PDAs

electronically via the Internet. The PDA methodologies which may be

agreed upon in accordance with NAESB Standards include: ranked, pro

rata (weighted), percentage, swing, and operator provided value. The

PDA methodology provided will be utilized by MRT for the allocation of

receipts. MRT shall be entitled to rely conclusively on the PDA

methodology. Entities affected by the allocation of gas quantities

shall be entitled to know the allocation methodology utilized, except

that MRT shall keep confidential the names of the other entities

involved unless otherwise agreed by the affected parties. MRT shall

provide daily operational allocations within one (1) business day after

the day of gas flow as set forth in Section 10.1 of these General Terms

and Conditions. MRT may use scheduled quantities as the basis for such

reports if such information is the best information available.

(b) Two welded parties should agree on who submits PDA

methodology and who allocates at the point before gas flows ("allocating

party").

for a point. At a location which is covered by an OBA, each party to

the OBA will allocate its side of the location.

(d) Only one PDA allocation methodology should be applied per

allocation period.

(e) The upstream or downstream party providing the point

confirmation should submit the PDA to the allocating party after or

during confirmation and before start of gas day.

(f) The allocating party should send back "confirmation" of

receipt of the PDA within 15 minutes.

(g) There are two types of allocations: daily and monthly.