Sabine Pipe Line Company LLC

Second Revised Volume No. 1

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Effective Date: 07/31/1993, Docket: RS92- 78-003, Status: Effective

Original Sheet No. 238 Original Sheet No. 238 : Superseded

7. ALLOCATION OF MEASURED GAS QUANTITIES

7.1 Allocation of Measured Receipts and Deliveries

Promptly at the end of each month, Sabine shall

allocate the daily quantity of gas measured at each

Receipt Point and each Delivery Point for the accounts

of Shippers under each Service Agreement. To the

extent possible, all quantities of gas measured at each

Receipt Point and each Delivery Point shall be

allocated on the basis of Shipper's confirmed

nominations. In the event the quantities of gas

measured at any Receipt Point or any Delivery Point do

not equal the confirmed nominations for such point, the

quantities of gas measured at the Receipt Point or the

Delivery Point shall be allocated in accordance with

the following methods and in the following order: (1)

under the provisions of an Operational Balancing

Agreement, (2) on the basis of a predetermined

allocation, or (3) pro rata on the basis of confirmed

nominations.

7.2 Operational Balancing Agreements

Sabine is willing to negotiate and execute an

Operational Balancing Agreement (OBA) with any Operator

for the purpose of minimizing operational imbalances or

other matters with respect to the receipt of gas into

or the delivery of gas from Sabine's System. The OBA

shall specify the gas custody transfer procedures to be

followed by Sabine and the Operator for the

confirmation of nominated quantities and allocation of

quantities of gas measured at the point(s) of

interconnection between Sabine and the Operator. The

OBA will provide that any variance between quantities

of gas measured and confirmed nominations for any day

shall be promptly resolved in-kind. To facilitate the

determination of variances on a timely basis, Sabine

and the Operator will agree upon necessary measurement,

allocation and accounting procedures and set forth such

procedures in the OBA. Sabine will post