Stingray Pipeline Company, L. L. C.

Third Revised Volume No. 1

Effective Date: 11/01/2008, Docket: RP08-436-000, Status: Effective

Second Revised Sheet No. 106 Second Revised Sheet No. 106

Superseding: First Revised Sheet No. 106

GENERAL TERMS AND CONDITIONS

3. PRIORITY OF SERVICE

3.1 ALLOCATION OF CAPACITY

This Section 3.1 governs the allocation of firm capacity on

Stingray's System among entities requesting firm services.

In assigning priority to otherwise valid requests for any

particular firm service, Stingray shall afford priority

based on rate, term, and volume applying consistent and

objective economic criteria. Such criteria shall be

identical to that utilized to evaluate bids under the

Capacity Release Program. In applying such criteria where a

Negotiated Rate or Negotiated Rate Formula is involved, the

value assigned to a request which includes a Negotiated Rate

or Negotiated Rate Formula shall be limited by the Recourse

Rate as provided in Section 34 of these General Terms and

Conditions. Requests with the same rate, term, and volume of

firm service shall be assigned priority on a first come,

first served basis. In the event valid requests are received

on the same Day and there is insufficient capacity to serve

all such Shippers, Stingray shall allocate the available

capacity on a pro rata basis based on each Shipper's

requested MDQ. Stingray shall not be required to grant

otherwise valid requests at less than the applicable maximum

rate, but may do so on a non-discriminatory basis.

3.2 LIMITATION OF FIRM SERVICES

(a) While firm services are not ordinarily interrupted or

nominations for firm services within MDQ declined due

to lack of capacity, capacity constraints may exist

from time to time or limitation or interruption of

firm service may be necessary for certain other

reasons. Stingray may decline to schedule firm service

for any of the following reasons and may curtail for

any of the same reasons except (3):

(1) If Shipper tenders Gas which does not conform to

the applicable pressure or quality requirements

of these General Terms and Conditions;

(2) For reasons of Force Majeure;

(3) Due to routine repair and maintenance to be

reasonably determined by Stingray;

(4) Pursuant to Section 3.11 of these General Terms

and Conditions;