Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 02/01/1999, Docket: RP99- 21-000, Status: Effective

First Revised Sheet No. 91 First Revised Sheet No. 91 : Effective

Superseding: Original Sheet No. 91

GENERAL TERMS AND CONDITIONS

(Continued)

8. SCHEDULING AND CURTAILMENT

8.1 Allocation of Available Capacity

Each Nomination Cycle, upon consideration of prevailing

operating conditions, scheduled or unscheduled maintenance

or repairs, and similar conditions, VGS shall allocate Available

Capacity in sequence on the basis of the Delivery Point

priorities, followed by mainline segment capacity

priorities, and finally by Receipt Point priorities, in the

following manner:

a. Delivery Point capacity will be first

allocated to Shippers who have designated

their Delivery Point as a Primary

Delivery Point in Exhibit B of an

executed Firm Service Agreement, followed

by allocation to interruptible shippers

first by rate and then on a pro rata

basis; provided, however, VGS shall

notify Shipper on any given Day and

Shipper will have the right to

immediately increase its rate to match

the rate(s) paid by other interruptible

shippers in order to prevent Shipper's

flowing quantities from being curtailed.

b. Mainline segment capacity will be

allocated in the following sequence from

highest priority to lowest priority:

(1) Primary Delivery Point from Primary

and Secondary Receipt Points within

the path of the Primary Receipt and

Primary Delivery Points;