Venice Gathering System, L. L. C.

Original Volume No. 1

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Effective Date: 01/01/1998, Docket: CP97-533-002, Status: Effective

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

GENERAL TERMS AND CONDITIONS

(Continued)

8.9 Curtailment

If, at any time, VGS determines because of operating

or other conditions affecting its System, that the

transportation capacity of all or part of its System is

insufficient to serve all transportation quantities

confirmed and scheduled on such day, Available Capacity

shall be allocated in a manner that results in curtailment

of transportation services on all or part of its System

where capacity is insufficient in the following priority:

a. First, Shippers who nominated

transportation quantities under

Interruptible Service Agreements

according to rate, and then pro rata; and

b. Second, pro rata among Shippers who

nominated transportation quantities under

Firm Service Agreements. Pro rata

curtailments of firm service will be

based on the ratio of each Shipper's

confirmed and scheduled transportation

quantities to the Shipper's Maximum Daily

Reservation Quantity multiplied by the

amount of capacity available to Shippers.

If the transportation capacity is limited on only

part or parts of VGS' System, including the Delivery Point

and/or Receipt Points, VGS' curtailment orders pursuant to

Subsection 8.9, may be limited to the transportation

services confirmed and scheduled for such part or parts of

VGS' System.