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. 101 Original Sheet No. 101 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

10. ALLOCATION OF MEASURED GAS QUANTITIES

10.1 Allocation of Measured Receipts and Deliveries

Promptly at the end of each month, VGS shall allocate

the daily quantity of gas measured at each Receipt Point and

the Delivery Point for the accounts of Customers under each

Service Agreement. To the extent possible, all quantities

of gas measured at each Receipt Point and the Delivery Point

shall be allocated on the basis of Customer's confirmed

nominations. In the event the quantities of gas measured at

any Receipt Point or the 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, (PDA) or (3) pro rata on the basis

of confirmed nominations.