Sabine Pipe Line Company LLC

Original Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-455-000, Status: Effective

Second Revised Sheet No. 239 Second Revised Sheet No. 239 : Effective

Superseding: First Revised Sheet No. 239

on its Internet web site (web site) the Receipt Points and

Delivery Points where an OBA governs the allocation of

quantities of gas measured. At a location which is covered

by an OBA, each party to the OBA should allocate its side of

the location. Under normal operating conditions, at a

location which is covered by an OBA, the scheduled quantity

will be the allocated quantity.

 

7.3 Eligibility for an Operational Balancing Agreement

 

Sabine shall negotiate and execute OBAs on a non-

discriminatory basis with any Operator provided that Sabine

shall not be obligated to negotiate and execute OBAs with

any Operator that:

 

a) is not credit worthy as determined pursuant to Section

24 of the General Terms and Conditions;

 

b) does not maintain, or have available, dispatching

operations that are staffed on a continuous basis;

 

c) does not have electronic flow measurement equipment to

which Sabine has access at the interconnect point(s)

for which an OBA is proposed;

 

d) would subject Sabine to an increase in operating costs

to operate electronic flow measurement or flow control

equipment; or

 

e) does not commit to timely and final determination of

variances based on prompt in-kind resolution.

 

7.4 Predetermined Allocations

 

Sabine is willing to negotiate and establish a predetermined

allocation methodology with any Operator for the purpose of

allocating quantities of gas measured at any Receipt Point

or any Delivery Point in the event the quantities of gas

measured do not equal the confirmed nominations for such

point. Unless otherwise agreed, all predetermined

allocation methods established between Sabine and Operator

must be agreed to in writing or by electronic communications

following the NAESB WGQ Standards before the first Day of

the allocation period in which the predetermined allocation

method is to be effective.