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. 315 Third Revised Sheet No. 315 : Effective

Superseding: Second Revised Sheet No. 315

GENERAL TERMS AND CONDITIONS

(continued)

5.6 Allocations (continued)

(v) Deliveries of Overrun Gas under Service Agreements

pursuant to Rate Schedule IT;

(vi) Deliveries under Service Agreements pursuant to the

wheeling option under Rate Schedule PHS up to the

amount scheduled and received by Transporter;

(vii) Deliveries during the Service Month under Service

Agreements to eliminate Imbalances resulting from

compliance with Section 20 incurred within such

Service Month; and

(viii)Deliveries during the Service Month under Service

Agreements to eliminate any other Imbalances incurred

within such Service Month.

If Transporter makes prior period adjustments or

reallocations of quantities previously allocated,

Transporter shall not assess penalties on Shipper as a

result thereof, provided such adjustments were not the

result of actions of such Shipper or its designee.

(b) If more than one Shipper designates and nominates Gas at one

Delivery Point, Transporter shall allocate quantities

delivered at such point in accordance with the scheduled

delivery nominations. Unless Transporter otherwise agrees,

any quantities taken at the Delivery Point in excess of

those scheduled for delivery, shall be allocated (i) pro

rata among the Shippers based on nominated quantities, (ii)

if no quantities were nominated, to the Service Agreement(s)

designated by the entity which controls the facilities

immediately downstream of the Delivery Point, or (iii) if no

Service Agreement(s) exist, to such controlling entity which

shall be charged, and pay to Transporter, the value of such

excess quantities based on one hundred fifty percent (150%)

of the applicable Daily Index Price(s) for the Service Month

in which the deliveries occurred.

within one (1) Business Day after the end of such Day.

Transporter shall use the best available data for such

allocations, which may include scheduled quantities.

Allocations shall be at a Receipt Point or Delivery Point,