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. 103 Original Sheet No. 103 : Effective

GENERAL TERMS AND CONDITIONS

(Continued)

c. does not have electronic flow measurement

equipment to which VGS has access at the

interconnect point(s) for which an OBA is

proposed or if VGS does not have

electronic flow measurement;

d. would subject VGS to an increase in

operating costs to operate electronic

flow measurement or flow control

equipment; or

e. does not commit to timely and final

determination of variances based on

prompt in-kind resolution.

10.4 Predetermined Allocations

a. VGS will permit upstream and downstream

operators, and all owners of gas that

submit a nomination or confirmation to

submit a PDA for each Day. PDAs must be

submitted prior to gas flow. VGS will

send a confirmation that it has received

a PDA within fifteen (15) minutes of

receipt. If a PDA is not submitted prior

to gas flow, VGS will allocate gas to

each Customer on a pro-rata basis based

on nominations.