Gulf South Pipeline Company L P

Sixth Revised Volume No. 1

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Effective Date: 01/01/2010, Docket: RP09-1065-001, Status: Effective

Second Revised Sheet No. 3000 Second Revised Sheet No. 3000

Superseding: First Revised Sheet No. 3000

GENERAL TERMS AND CONDITIONS

Section 25

25. Segmentation of Capacity

25.1 All Customers that have executed a service agreement under

either the FTS or NNS Rate Schedule (including FTS-SCO and NNS-

SCO) may, subject to the provisions set forth herein, segment

their service agreement receipt point MDQs. Such Customers,

excluding FTS-SCO and NNS-SCO Customers, may also segment their

service agreement receipt point MDQs for the purpose of

releasing capacity to a replacement Customer. Capacity Release

transactions will be governed by Section 29 of these General

Terms and Conditions. Segmentation under a NNS service

agreement is limited to the flowing gas component of each

service agreement (50% of the applicable seasonal MDQ).

Segmentation will be provided through the use of Virtual Points.

Virtual Points will be used to segment a Customer's service

agreement receipt point MDQs. A Customer's receipt point

capacity within the zone may be segmented or released between

the receipt point and the applicable Virtual Point. Segmented

capacity nominations may be made from a primary receipt point to

a Virtual Point in the same rate zone. Segmented capacity

nominations may also be made from supplemental receipt points to

the Virtual Point in the same rate zone. Physical Receipt

Points and Pooling Points can only be nominated to the Virtual

Point applicable to the specific rate zone. Nominations between

a receipt point and the Virtual Point will be scheduled in

accordance with Section 11.4.

Segmentation of capacity on the Expansion Facilities is subject

to the provisions of Section 25.8.

25.2 Virtual Points - A Virtual Point will be established in each

of Gulf South's rate zones. Virtual Points are used to segment

receipt point capacity in each zone. Receipts from Gulf South's

incremental transportation facilities located in Mobile Bay and

Bastian Bay are part of the Virtual Point in Zone 4. All

receipt points in a zone may be nominated to that zone's Virtual

Point at no cost, except for applicable gathering, Mobile Bay or

Bastian Bay charges.