Quest Pipelines (Kpc)

Second Revised Volume No. 1

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Effective Date: 03/01/2009, Docket: RP09-258-000, Status: Effective

First Revised Sheet No. 132 First Revised Sheet No. 132

Superseding: Original Sheet No. 132

GENERAL TERMS AND CONDITIONS (Continued)

8.3 Shippers shall cause the Operator of each Point of Receipt and

each Point of Delivery designated in any nomination pursuant to

the NAESB standards as referenced on Tariff Sheet Nos. 190 and 191

to confirm all such nominations or changes to nominations to KPC

in writing, by facsimile transmission or via the IEC as provided

for in this Section 8, prior to implementation by KPC.

8.4 (a) KPC will accept one pre-determined allocation (PDA)

methodology per allocation period. The upstream or

downstream party providing the point confirmation will

submit the PDA to the allocating party after or during the

confirmation and before the start of the gas day. The types

of Allocation Methodologies is a list from which two (2)

parties may agree. If the two (2) 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.

(b) Changes to the daily allocation methodology may be made

during the Month. Such changes must be submitted one Day in

advance of the effective date and shall be effective

prospectively. No retroactive reallocations of any

transactions shall be permitted.

(c) At a location which is not covered by an OBA, KPC will

allocate Shippers at the Shippers' contract level or higher.

KPC is not required to allocate to a lower level or accept

accounting allocation instructions from the Shipper (i.e.,

neither Pre-determined Allocations (PDAs) nor Shipper ranks

supplied in the nominations.)

(d) At a location which is not covered by an OBA, a Confirming

Party should submit a Pre-determined Allocation (PDA) to the

allocating party at a level that is based on the allocating

party's business practice, but in no event, will such PDA be

at a lower level (more detailed) than that level of

information exchanged between such parties during their

confirmation process.

(e) A pre-determined Allocation (PDA) may not be used to

allocate gas to a nominatable transaction that was not

identified in the nomination or confirmation process, as

applicable, absent prior mutual agreement among the

Confirming Parties and the party being allocated to in such

transaction. In the event of a conflict between this

standard and KPC' existing Tariff or general terms and

conditions, the latter will prevail.