Reliant Energy Gas Transmission Company

Fifth Revised Volume No. 1

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

First Revised Sheet No. 322A First Revised Sheet No. 322A : Effective

Superseding: Original Sheet No. 322A

GENERAL TERMS AND CONDITIONS

(continued)

5.7 Balancing (continued)

The lesser of two percent (2%) of the total

deliveries under the Service Agreements eligible

to be aggregated or the aggregated net quantity,

shall be the quantity eligible to be offset (the

"Eligible Quantities") against opposite type

Eligible Quantities in other Pooling Areas.

Transporter shall offset Eligible Quantities in

the North, South and Neutral Pooling Areas among

each other, and Eligible Quantities in the West

1 and West 2 Pooling Areas against each other.

Transporter shall offset Eligible Quantities

against each other by Pooling Area, eliminating

the Eligible Quantities constituting the lowest

percentage of total deliveries, and then the

next lowest, or until all of the Eligible

Quantities for which there are opposite Eligible

Quantities have been offset. Any Eligible

Quantities remaining thereafter shall be

aggregated in accordance with sub-section B.

below.

B. After completion of the procedures described in

sub-section A. above, Transporter will aggregate

by Pooling Area: (I) any of Shipper's Monthly

Imbalances incurred in the prior Month under

Service Agreements totally excluded from the

procedures described in sub-section A. above;

with (II) any Monthly Imbalances incurred in the

prior Month in excess of the Eligible Quantities

under the Service Agreements which were subject

to the procedures described in sub-section A.

above; and (III) any remaining Eligible

Quantities. Transporter will make available

electronically information regarding Shipper's

imbalances by Pooling Area after completion of

the aggregation procedures described above.