Centerpoint Energy - Mississippi River

Third Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 51-000, Status: Effective

Second Revised Sheet No. 114A Second Revised Sheet No. 114A : Effective

Superseding: First Revised Sheet No. 114A

GENERAL TERMS AND CONDITIONS

(Continued)

7. CONDITIONS OF RECEIPT AND DELIVERY (Continued)

(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.

(h) The same standard allocation methodologies should be

available for use at all points.

(i) The types of allocation methodologies are on a list from

which two parties may agree. If the two parties cannot agree upon an

allocation methodology, pro rata based upon confirmed nominations (that

are scheduled) should be used as the default method. The party

responsible for custody transfer (the party performing the measurement

function) should provide the allocation.

(j) MRT should accept NAESB approved allocation methodology

types from the upstream or downstream custody transfer party who is

providing the point confirmation.

(k) A new allocation detail may be needed when a nomination

changes.

7.14 Preliminary Allocations - Deliveries

The PDA methodology shall be utilized in making the preliminary

allocations to Customers, as set forth in Section 7.13 above, or as

otherwise agreed by MRT and the entity physically receiving the gas

deliveries. Deviations from the PDA methodologies provided MRT shall

only be allowed if all affected parties and MRT agree to the alternate

allocation order.

7.15 Actual Allocations - Deliveries

(a) The preliminary allocations, as adjusted, shall be the

actual allocations when the actual metered or allocated quantities are

invoiced.