Texas Gas Transmission, LLC

Third Revised Volume No. 1

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Effective Date: 09/15/2008, Docket: RP08-392-000, Status: Effective

Original Sheet No. 2405 Original Sheet No. 2405 GENERAL TERMS AND CONDITIONS Section 12 (Cont'd) 12.7 Imbalance Nominations Customers shall nominate to Texas Gas the quantity of gas, to be used to correct imbalances. Such Imbalance Nomination will be scheduled in accordance with Texas Gas' nomination procedures, subject to available capacity. To the extent capacity is unavailable to meet all Imbalance nomination requests, Texas Gas will allocate available capacity pro rata based on such Imbalance nominations. When not in conflict with Texas Gas' tariff, Texas Gas will use Customer provided priority rankings when making reductions during the scheduling process. 12.8 Confirmation and Scheduling of Gas Receipts and Deliveries (a) When not in conflict with Texas Gas' tariff, Texas Gas will use Customer provided priority rankings when making reductions during the scheduling process. If such rankings are not provided, Texas Gas will schedule available capacity pro rata based on Customer nominations. (b) Scheduled Quantities will be made available to the Point Operator, Customer, and/or Nominating Party via EDM, or, where agreed to by Texas Gas, via fax. (c) Customers shall cause the Operator of each Point of Receipt and each Point of Delivery designated in any nomination to confirm all such nominations. 12.9 Customer shall make all necessary arrangements with other parties at or upstream of the point(s) of receipt where it tenders gas to Texas Gas for transportation. Such arrangements shall be coordinated with Texas Gas' Gas Transportation & Capacity Allocation Department. 12.10 Priorities Applicable for Scheduling Capacity at Point(s) of Receipt Texas Gas shall allocate capacity at receipt points in sequence as follows: (a) Pro rata among firm transportation customers using primary Points of Receipt pursuant to Texas Gas' Firm Rate Schedules, and TAPS where the TAPS customer is utilizing the primary receipt point capacity of the corresponding transportation agreement it is feeding. (b) Pro rata among firm transportation customers using secondary Points of Receipt pursuant to Texas Gas' Firm Rate Schedules, and TAPS where such service is feeding a downstream firm service transportation agreement.