Mississippi Canyon Gas Pipeline, LLC

First Revised Volume No. 1

Effective Date: 12/20/1998, Docket: CP96-159-006, Status: Effective

Original Sheet No.98 Original Sheet No.98 : Effective

GENERAL TERMS AND CONDTIONS (cont'd)

11.2 Adjusting Nominations (c) - (cont'd)

(ii) If the above determination of constraint is made

AFTER Scheduled Quantities are determined for the

constrained Receipt and/or Delivery Point(s), then in

this situation only, service pursuant to subsection

11.2(b)(ii) must be allocated within the same priority

as service pursuant to subsection 11.2(b)(i).

(iii) If capacity must be allocated with the

services included in subsection 11.2(b)(iii),

transportation service will be curtailed

according to the price ranking used for

allocations, such that Shippers who pay

higher rates are curtailed after those who

pay lower rates; and in the event more than

one Shipper is paying a given rate, then the

service interruption for those Shippers will

be allocated pro rata based on each Shipper's

share of scheduled nominations for that

Receipt or Delivery Point.

11.3 Scheduled Quantity:

(a) Confirmation: Transporter may make such inquiries as it

deems necessary, including but not limited to

contacting the responsible dispatching party at

each Receipt Point and each Delivery Point, to

determine that Shipper's Adjusted Nominations will

be confirmed. Shipper shall be responsible for

all dispatching notices to third-party

transporter(s) and for notifying third-party

transporter(s) of any changes in nominations.

Transporter will accept only that portion of

Shipper's Adjusted Nomination that is confirmed

(Scheduled Quantity).

(i) With respect to the timely

nomination/confirmation process at a receipt or

delivery point, in the absence of agreement to the

contrary, the lesser of the confirmation quantities

should be the confirmed quantity. If there is no

response to a Request for Confirmation or an

unsolicited Confirmation Response, the lesser of the

confirmation quantity or the previously scheduled

quantity should be the new confirmed quantity.