Tennessee Gas Pipeline Company

FIFTH REVISED VOLUME NO. 1

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Effective Date: 08/01/2009, Docket: RP09-737-000, Status: Effective

Tenth Revised Sheet No. 310 Tenth Revised Sheet No. 310

Superseding: Ninth Revised Sheet No. 310

GENERAL TERMS AND CONDITIONS (continued)

(d) The deviation of the natural gas from Boyle's Law shall be determined

by the use of the tables of formulae published by the American Gas

Association for Research Project NX-19 corrected for carbon dioxide and

nitrogen, or any applicable formulae published by the American Gas

Association. The molecular percentage of N2 and CO2 shall be

determined at approximately the same time or from the same analyzed gas

sample used for the determination of the compressibility factors, with

corrections for specific gravity, temperature and pressure.

3. Determination of Receipts and Deliveries:

(a) NAESB Standard 2.3.16 (Version 1.8) states: List of allocation

methodology types agreed upon: Ranked, Pro Rata, Percentage, Swing,

and Operator Provided Values. NAESB Standard 2.3.17 (Version 1.8)

states: The same standard allocation methodologies should be available

for use at all points. In addition, NAESB Standard 2.3.18 (Version

1.8) states: The types of allocation methodologies is a list from

which two parties may agree. If the two parties cannot agree upon an

allocation methodology, pro rata based upon confirmed nominations

should be used as the default method. The party responsible for

custody transfer (the party performing the measurement function) should

provide the allocation. NAESB Standard 2.3.4 (Version 1.8) states:

Only one PDA allocation methodology should be applied per allocation

period. NAESB Standard 2.3.5 (Version 1.8) states: The upstream or

downstream party providing the point confirmation should submit the

predetermined allocation to the allocating party after or during

confirmation and before start of Gas Day. Further, NAESB Standard

2.3.19 (Version 1.8) states: The transportation service providers

should accept NAESB-approved allocation methodology types from the

upstream or downstream custody transfer party who is providing the

point confirmation. In addition, NAESB Standard 2.3.3 (Version 1.8)

states: There is no need to submit pre-determined allocations if a

transportation service provider has an OBA in effect for a point. In

this Section 3, the term "Party" shall include producer, shipper,

operator, supply aggregator and market aggregator, and the term

"Up/Down Party" shall include any upstream or downstream connected

party.

(b) Allocation of Receipts - Unless prohibited by applicable law or

regulation, the quantities received by Transporter at any receipt point

shall be allocated among Parties and services as follows:

(1) Transporter shall allocate actual deliveries into its system in

accordance with allocation procedures specifically agreed to by

Transporter and the operator of a point and/or Up/Down Party(ies)

("UDP") at a point as provided for in the Balancing Agreement(s)

(Operational, Pipeline or Aggregator) governing the point.