Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

Effective Date: 12/01/2002, Docket: RP03- 60-000, Status: Effective

Third Revised Sheet No. 277 Third Revised Sheet No. 277 : Effective

Superseding: Substitute Second Revised Sheet No. 277

GENERAL TERMS AND CONDITIONS

(continued)

5.2 Receipt Nominations and Allocation Methodology. Except as

otherwise provided in this Tariff, and subject to Section 5.2(e)

of these General Terms and Conditions, Shipper shall furnish

receipt nominations to Transporter for all quantities of Gas

Shipper desires Transporter to receive, including applicable Fuel

Use and LUFG retentions. All nominations shall be prospective

only, and must be made electronically except during emergency

events as provided in Section 22.8 of these General Terms and

Conditions. Transporter may rely on such receipt nominations for

all purposes and shall not be responsible or liable for disputes

arising from such nominations or actions taken in accordance with

this section. At a physical Receipt Point, unless there is an

operational balancing agreement in effect, one of the standard

allocation methodologies, inter alia, will be determined in

accordance with NAESB Standards after or during confirmation and

prior to gas flow. Pursuant to NAESB Standard 2.3.16, the list of

allocation methodology types is as follows:

A. ranked;

B. pro rata;

C. percentage;

D. swing; and

E. Operator provided value.

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 (and

scheduled) nominations is the default method, and the primary

measuring party will provide the allocation using such

methodology. Only one pre-determined allocation methodology

should be applied per allocation period. Transporter and Operator

may memorialize their pre-determined allocation methodology

agreement by entering into a Predetermined Allocation Agreement in

the form beginning on Sheet No. 508 of this Tariff, provided that

such Operator is pre-qualified for creditworthiness purposes

pursuant to Section 14.5 below.