Mississippi Canyon Gas Pipeline, LLC

First Revised Volume No. 1

Effective Date: 08/01/1999, Docket: RP99-383-000, Status: Effective

First Revised Sheet No. 104 First Revised Sheet No. 104 : Effective

Superseding: Original Sheet No.104

GENERAL TERMS AND CONDITIONS (cont'd)

12.2 Allocation of Actual Quantities at Delivery Points:

(a) The downstream party providing the point

confirmation should submit the pre-determined

allocation to the allocating party after or during

confirmation and before start of gas day. The

allocation statement shall allocate the actual

quantities of gas in Dth delivered each day (and

in the aggregate for the month) for the account of

its Shippers at all of its various Delivery

Points. The allocation methodology types agreed

upon are as follows; ranked, pro rata, percentage,

swing or operator provided value:

(i) ranked by the order in which the

Transportation Service Agreements are to be

allocated to the extent gas is available as

allocated pursuant to subsection 12.2(b);

(ii) pro rata based on confirmed nominations;

(iii) percentage of the gas available for

delivery at the Delivery Point;

(iv) designation of a swing contract for delivery

volume imbalances; or

(v) an operator provided value.

(b) If there is insufficient quantity of gas to match

the total scheduled quantities within a particular

category below, then the available quantity of gas

shall be allocated pro rata within that category

based on scheduled quantities; and if there is a

quantity of gas in excess of the quantity needed

to match the total scheduled quantities within the

last category below, then the excess quantity of

gas shall be allocated pro rata within that

category based on scheduled quantities.

Allocations at Delivery Points shall be performed

at the lowest level of detail provided by

Shipper's nominations for gas to be delivered by

Transporter at the Delivery Points.

(i) the scheduled quantity of gas in Dth for FT-1

and FT-2 Transportation Service Agreements at

Primary Delivery Points up to Shipper's MDDQ

multiplied by the Shipper Specific Heating

Value;