Westgas Interstate, Inc.

First Revised Volume No. 1

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Effective Date: 09/01/2005, Docket: RP05-478-000, Status: Effective

Third Revised Sheet No. 46B Third Revised Sheet No. 46B : Effective

Superseding: Second Revised Sheet No. 46B

GENERAL TERMS AND CONDITIONS

(Continued)

(c) Two welded parties should agree on who submits a

pre-determined allocation methodology and who

allocates at the point before gas flows. 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 shall be used as the default

method. The party responsible for custody transfer

(the party performing the measurement function)

should provide the allocation.

7.4 At a location, the total quantity measured or

estimated for the period should be used to provide

allocations to parties’ scheduled transactions (or

otherwise identified transactions consistent with 7.4(g).

(a) In the allocation process, estimated quantities

should be adjusted to actuals following the time that

the actual quantities are known.

(b) At a location, which is not covered by an

Operational Balancing Agreement(OBA), an Allocating

Party should receive Pre-determined Allocations and

calculate the allocations for the location and

provide these allocations to the appropriate parties

for their use.

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

party which is not the allocating party at the

location should receive and process the allocations

from the allocating party and employ such allocations

when providing allocation information to its parties

(as applicable and appropriate).

(d) At a location, which is covered by an OBA, each

party to the OBA should allocate its side of the

location.

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

Transporter which allocate to Shipper at the

Shipper’s contract level or higher are not required

to allocate to a lower level or accept accounting

allocation instructions from the Shipper (ie, neither

Pre-determined Allocations (PDAs) nor Shipper ranks

supplied in the nomination).