T.W. Phillips Pipeline Corp.

Original Volume No. 1

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Effective Date: 01/01/2010, Docket: RP10-141-000, Status: Effective

Original Sheet No. 48 Original Sheet No. 48

GENERAL TERMS AND CONDITIONS

(Continued)

9. SCHEDULING PRIORITY

9.1. If Transporter is unable on any day to satisfy all nominations for service, then

Transporter will schedule service in the following order of priority from first

scheduled to last scheduled:

9.1.1. First, nominations within Shipper’s MDQ from Primary Receipt Points and

Primary Delivery Points under Rate Schedule FT; if all such nominations

cannot be satisfied, Transporter shall schedule nominations within this

priority level pro rata based on nominated quantities with Shipper’s MDQ.

9.1.2. Second, nominations within Shipper’s MDQ from Secondary Receipt Points or

Secondary Delivery Points under Rate Schedule FT; if all such nominations

cannot be satisfied, Transporter shall schedule nominations within this

priority level pro rata based on nominated quantities within Shipper’s

MDQ.

9.1.3. Third, AOS under Rate Schedule FT and nominations under Rate Schedule IT,

if all such nominations cannot be satisfied, Transporter shall schedule

nominations within this priority level by price from highest to lowest;

provided that scheduling will be pro rata based on nominated quantities

among Shippers paying the same rate; and provided further that, for pur-

poses of scheduling nominations under this section, Negotiated Rates that

exceed the maximum Recourse Rate will be treated as though equal to the

maximum Recourse Rate.

9.1.4. Fourth, any other nominations for services under this Tariff.

9.2. Transporter shall use service requester provided rankings when making reductions

during the scheduling and curtailment process when this does not conflict with

tariff-based rules. Pursuant to NAESB Standard 2.3.26, the time limitation for

disputes of allocations shall be six (6) months from the date of the initial

month-end allocation with a three (3) month rebuttal period. This standard shall

not apply in the case of deliberate omission or misrepresentation or mutual mis-

take of fact. Parties’ other statutory or contractual rights shall not otherwise

be diminished by this standard.