U S G Pipeline Company

ORIGINAL VOLUME NO. 1

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Effective Date: 05/18/2009, Docket: RP09-522-000, Status: Effective

FIRST REVISED SHEET NO. 45 FIRST REVISED SHEET NO. 45

Superseding: ORIGINAL SHEET NO. 45

GENERAL TERMS AND CONDITIONS

9.3 Scheduling Priority: Transporter shall schedule receipts and

deliveries of gas which has been properly nominated and confirmed in

the following sequence and/or in accordance with the supply/market

rankings provided in a Shipper's Customer Nomination Form:

(a) First among firm shippers using Primary Receipt or Delivery

Points according to the quantities of gas scheduled by such

Shippers;

(b) Pro-rata among firm shippers using Secondary Receipt or Delivery

Points according to the quantities of gas scheduled by such

Shippers.

(c) Among interruptible services, according to the IT rate paid by

Shippers each month, with IT at higher rates being scheduled

ahead of IT at lower rates. IT Shippers paying the same rate

shall be scheduled pro rata based on scheduled quantities. For

the purpose of this subsection (c), any shipper paying a rate

above the maximum rate, shall be deemed to be paying the

maximum applicable rate.

9.4 Allocation of Limited Capacity

(a) (i) Curtailment: If, on any day, Transporter determines that

the capacity of its system, or any portion thereof including

the point(s) at which gas is tendered for transportation is

insufficient to serve all Shippers that are scheduled to

receive service on such day, capacity that requires allocation

shall be allocated in a manner that results in curtailment of

capacity, to zero if necessary, in reverse of the order listed

in Section 9.3 above. If capacity must be allocated within

the services included in 9.3(a) above, customers will be

curtailed pro rata based on Scheduled Quantities. If

interruptible transportation must be allocated, such

transportation will be curtailed according to the price being

paid, with lower priced transportation being curtailed before

higher priced transportation. Provided that, for the purpose

of the foregoing sentence, any shipper paying above the

maximum IT rate shall be deemed to be paying the maximum

applicable rate.